Techno-economic analysis of battery energy storage systems for grid congestion management and offshore wind parks
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Journal Title
Journal ISSN
Volume Title
Insinööritieteiden korkeakoulu |
Master's thesis
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Author
Date
2024-01-22
Department
Major/Subject
Mcode
Degree programme
Master’s programme in Energy Storage
Language
en
Pages
52+13
Series
Abstract
In the accelerated transition to a sustainably powered economy, offshore wind has increasingly become a strong focus in several nations as they offer vast generation potential with minimal conflict for a relatively limited land area. In Europe, Germany and Finland are among the top promoters for exploiting this clean resource, both sharing the Baltic Sea region. This investigation analyses the offshore wind expansion plans in Finland and Germany’s Baltic coast, and discovers a potential location for a BESS to be installed in conjunction with existing and future generation to provide services to the grid such as Grid Congestion Management for offshore generation, along with a simplified energy arbitrage algorithm, and evaluates their business potential through the construction of a Free Cash Flow model that ties together revenue and cost modelling, use-case-dependent degradation modelling and an alternate iterative sizing methodology for BESS. It is discovered that the business potential of such a BESS depends significantly on the energy market conditions and its price volatility, but by combining both an opportunistic curtailment capture algorithm with an energy arbitrage algorithm as operating regime, synergies can be achieved which strengthen the Internal Rate of Return of a 20-year project such as the proposed system.Description
Supervisor
Santasalo-Aarnio, AnnukkaThesis advisor
Grbovic, OlgaRubenbauer, Hubert
Keywords
offshore, congestion, BESS, techno-economics, modelling
