- Volume 62 Issue 10
DOI QR Code
Estimation of Reasonable Price of Battery Energy Storage System for Electricity Customers Demand Management
전력소비자 수요관리용 전지전력저장시스템의 적정 가격 산정
- Kim, Seul-Ki (Smart Distribution Research Center, Advanced Power Grid Research Division, Korea Electrotechnology Research Institute) ;
- Cho, Kyeong-Hee (Smart Distribution Research Center, Advanced Power Grid Research Division, Korea Electrotechnology Research Institute) ;
- Kim, Jong-Yul (Smart Distribution Research Center, Advanced Power Grid Research Division, Korea Electrotechnology Research Institute) ;
- Kim, Eung-Sang (Smart Distribution Research Center, Advanced Power Grid Research Division, Korea Electrotechnology Research Institute)
- Received : 2013.07.03
- Accepted : 2013.09.28
- Published : 2013.10.01
The paper estimated the reasonable market price of lead-acid battery energy storage system (BESS) intended for demand management of electricity customers. As time-of-use (TOU) tariffs have extended to a larger number of customers and gaps in the peak and off-peak rates have gradually risen, deployment of BESS has been highly needed. However, immature engineering techniques, lack of field experiences and high initial investment cost have been barriers to opening up ESS markets. This paper assessed electricity cost that BESS operation could save for customers and, based on the possible cost savings, estimated reasonable prices at which BESSs could become a more prospective option for demand management of customers. Battery scheduling was optimized to maximize the electricity cost savings that BESS would possibly achieve under TOU tariffs conditions. Basic economic factors such as payback period and return on investment were calculated to determine reasonable market prices. Actual load data of 12 industrial customers were used for case studies.
- Ministry of Trade, Industry & Energy, "Promotion of High-capacity Energy Storage System Supply". 2012. 7. 27.
- Ministry of Trade, Industry & Energy, "2013 Smart grid implementation plan", Announcement, No. 2013-112, 2013. 6. 4.
- Sung-Min Cho, Hee-Sang Shin, Jae-Chul Kim,, "Modeling of Battery Energy Storage System at Substation for Load Leveling and Its Economic Evaluation", the Transactions of KIEE Vol. 61, No. 7, pp. 950-956, 2012 July https://doi.org/10.5370/KIEE.2012.61.7.950
- Yong-Duk Lee and Sung-Yeul Park, "Cost effective BESS design for building power systems", 28th Annual IEEE Applied Power Electronics Conference and Exposition (APEC), pp. 2198-2205, March 2013.
- C. Wang, W. Sun, T. Yi, Z. Yan and Y. "Review on energy storage application planning and benefit evaluation methods in smart grid", Proceedings of the Chinese Society of Electrical Engineering, Vol. 33, Issue 7, pp. 33-41, March 2013.
- A. Oudalov, R. Cherkaoui, and A. Beguin, "Sizing and optimal operation of battery energy storage system for peak shaving application", 2007 IEEE Lausanne POWERTECH Proceedings, pp. 621-625, July 2007.
- R. F. Boehm, "An approach to decreasing the peak electrical demand in residences", Energy Procedia, Vol. 14, pp. 337-342, 2012. https://doi.org/10.1016/j.egypro.2011.12.939
- M. Stadler, M. Kloess, M. Groissbock, G. Cardoso, R. Sharma, M. C. Bozchalui, and C. Marnay, "Electrical storage in California's commercial buildings", Applied Energy, Vol. 104, pp. 711-722, April 2013. https://doi.org/10.1016/j.apenergy.2012.11.033
- Power Demand Management Portal, https://www.kdrm.or.kr/main.action
- Korea Electric Power Corporation, Electric Rates Table, http://cyber.kepco.co.kr
- Kyeong-Hee Cho, Seul-Ki Kim, Eung-sang Kim, "Optimal Capacity Determination Method of Battery Energy Storage System for Demand Management of Electricity Customer", the Transactions of KIEE, Vol. 62, No. 1, pp.21-28, 2013 January. https://doi.org/10.5370/KIEE.2012.62.1.021
- KB Financial group inc. Management institute, "Understanding of the Knowledge industry center(Factory like as apartment)", Vol. 12-84, 2012. 6. 21
- Central Institute of Battery Technology, Global Battery Co., Ltd., Valve regulated Gel type Stationary lead acid battery Specifications
- Byung-Rok Song, Dong-Jin Kang, Jeong-Hyun Rho, "Estimation of the Appropriate Social Discount Rate of Public Transportation Investment Projects", The Korea Spatial Planning Review, Vol. 61, pp. 3-23, 2009 June. https://doi.org/10.15793/kspr.2009.61..001