Economic feasibility of flow batteries in grid-scale applications

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Journal Title

Journal ISSN

Volume Title

Sähkötekniikan korkeakoulu | Master's thesis

Date

2018-06-18

Department

Major/Subject

Electrical Power and Energy Engineering

Mcode

ELEC3024

Degree programme

AEE - Master’s Programme in Automation and Electrical Engineering (TS2013)

Language

en

Pages

56+6

Series

Abstract

Due to their properties, the most suitable application for flow batteries currently is a bulk energy storage. This thesis investigates the economic feasibility of the technology in terms of monetary profitability in the appropriate business cases, namely employment in electricity markets and in isolated island systems with the high share of renewable generation. This thesis calculates the flow batteries annual life cycle costs and compares them with the potential revenues from participation in the Finnish electricity markets and operation in isolated power systems of the Faroe Islands and the island of Graciosa. The flow batteries exploitation in the Finnish electricity markets 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.

Description

Supervisor

Syri, Sanna

Thesis advisor

Zakeri, Behnam

Keywords

energy storage, flow batteries, battery profitability, electricity markets, island power systems, cost-benefit analysis

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