Economic feasibility of flow batteries in grid-scale applications

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Abstract

Due to their properties, the most suitable application for flow batteries currently is a bulk energy storage. This paper investigates the economic feasibility of the technology in terms of monetary profitability in the appropriate business cases, namely employment in energy markets and in isolated island systems with the high share of renewable generation. We calculate the flow batteries life cycle costs and compare them with the potential revenues from participation in the Finnish energy markets and operation in isolated power systems of the Faroe Islands and the island of Graciosa. We find that the flow batteries exploitation in the Finnish market is not profitable - they collect 43-60% of their costs in the most promising application. The island cases represent a more viable option due to the high fuel costs of the thermal plants that the batteries and renewable sources substitute or decrease their share. However, the revenue and subsequent profitability highly depend on the volatile fuel prices.

Details

Original languageEnglish
Title of host publication15th International Conference on the European Energy Market, EEM 2018
Publication statusPublished - 20 Sep 2018
MoE publication typeA4 Article in a conference publication
EventInternational Conference on the European Energy Market - Lodz, Poland
Duration: 27 Jun 201829 Jun 2018
Conference number: 15

Conference

ConferenceInternational Conference on the European Energy Market
Abbreviated titleEEM
CountryPoland
CityLodz
Period27/06/201829/06/2018

    Research areas

  • Cost-benefit analysis, Energy storage, Flow batteries

ID: 30789141