Naslov
Determining the minimal Battery Storage System subsidy: The Internal Rate of Return-based optimisation approach
(Determining the minimal Battery Storage System subsidy: The Internal Rate of Return-based optimisation approach)

Autori
Jurčević, Jura ; Zoričić, Davor ; Dolinar, Denis ; Pavić, Ivan ; Čović, Nikolina

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Proceedings of the International Conference on Electrical, Computer, Communications and Mechatronics Engineering (ICECCME), 16-18 November 2022, Maldives / - Malé : Institute of Electrical and Electronics Engineers (IEEE), 2022, 593-599

Skup
International Conference on Electrical, Computer, Communications and Mechatronics Engineering (ICECCME 2022)

Mjesto i datum
Malé, Maldivi, 16.11.2022. - 18.11.2022

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Battery Storage Subsidy, Internal Rate of Return (IRR), Multi-Objective Optimisation, Photovoltaic Systems, Renewable Energy

Sažetak
Decarbonization efforts aimed at tackling the climate change issues rely on increasing use of renewable energy sources (RES) in the power system. In order to maximise their integration, significantly higher rollout of the battery storage systems (BSS) is necessary, even in the EU which set ambitious goal of achieving carbon neutrality by 2050. EU goals will be difficult to realize without incentives to battery storage. In this paper direct subsidies reducing the installation cost of BSS are considered. We use German power market data for the 2017 and 2021: intraday prices, day-ahead prices and primary reserve markets in particular. Battery storage is integrated with photovoltaics (PV) in order to provide electricity to small and medium sized industrial plants. In this setup the multiobjective optimisation (MOO) method to optimise the annual BSS operation is applied and internal rate of return is used to assess profitability. Since the BSS cycle lifetime (determined by market conditions) often exceeds the calendar lifetime, a fall in the profitability occurs which is used to calculate the subsidy level. The results suggest that the obtained subsidy range is within the range reported in practice considering the perfect foresight assumption used in the analysis. Also, lower subsidies are obtained for 2021 due to conditions more favourable for BSS operation.

Izvorni jezik
Engleski

Znanstvena područja
Elektrotehnika, Ekonomija

POVEZANOST RADA