Cost-Benefit Analysis of an Energy Storage System: A Case Study of a 250kW/1MWh Storage Unit

Cost-Benefit Analysis of an Energy Storage System: A Case Study of a 250kW/1MWh Storage Unit

Recently, we conducted a cost-benefit analysis of implementing an energy storage system at a location with a diverse energy consumption profile. The following facilities are connected to the same grid connection:

  • Cold storage warehouses
  • A service facility operating from 8 AM to 6 PM
  • Fast chargers for electric vehicles with a total power of 150kW
  • An office building
  • A photovoltaic installation with a capacity of 50kW

The site has a grid connection capacity of 520kW, with the possibility to increase the contracted power to 720kW. The annual energy consumption amounts to 1,490 MWh.

Our analysis was based on hourly and 15-minute energy consumption profiles, also considering the simulated energy yield data from the photovoltaic installation.

Below, we present several charts illustrating the consumption profile:

In the table below, we have presented an analysis of distribution fees that can be reduced through the use of an energy storage system.

We also analyzed the relationship between energy consumption and production from the photovoltaic installation, which showed that the facility has the potential to expand its capacity with additional renewable energy sources.

The result of the analysis was a proposal to install an energy storage system with a capacity of 250 kW and 1 MWh of energy. The rationale for choosing an energy storage system with these parameters was presented in the form of several profitability scenarios and an analysis of potential revenue sources, each scenario presenting a different return on investment.

In creating the profitability scenarios for energy storage systems, the following factors were considered:

  • Introduction of dynamic tariffs planned for the end of this year,
  • Changes in distribution fee calculation,
  • Changes in the capacity market, including Demand Side Response (DSR) services,
  • Offers from energy aggregators.

Comparison of Energy Storage Utilization Strategies

Strategy No. 1

Strategy No. 2

Strategy No. 3

Strategy No. 4

Strategy No. 5

Depending on the chosen energy storage management strategy, the payback period of the investment varies significantly. Some strategies rely on specific assumptions, such as achievable price spreads or revenue from system services that are yet to be launched.

We will continuously verify the results of this analysis because the storage facility will be constructed in the near future, allowing us to evaluate over time how the actual performance and profitability of the energy storage align with the analysis presented above.