ANNOUNCEMENTS
Energy Arbitrage is a smart approach to utilize Energy storage to get Economic benefits in terms of Energy consumption by reducing dependency on grid at peak hours as per the ToD retail tariff rates and use the Energy storage instead to save on Electricity bill for the Consumers. The project envisage the use case of Time of use bill Management in a commercial building in Delhi and its operation using BESS control as per the price signal from the utility. The Project also emphasizes on battery chemistry and technology selection. Comparison of Technology was carried out using ES-select software by Sandia. An excel based tool was developed which has 3 sub models namely Battery Control Algorithm, Battery Degradation model, Cost Benefit Model. Thereafter, technical benefits (due to varying DOD, C-rates, Battery size) and commercial benefits (NPV, Annual savings, Project Cash flows) are calculated in the excel based model based on various Battery Technology.
As per the Initial Feasibility it was found that Li ion High Energy is the most feasible solution to be deployed on the site followed by VRLA batteries which are not usually suited due to less throughput capacity. It was found out from the model that the battery degrades at a rapid pace at high DOD due to fading at Lithium electrode and at low DOD, the results are not improving much due to Calendar degradation of the batteries leading to Negative NPV. Also it was found out that battery operations has huge impact on Annual savings and battery degradation. Idling Battery at mid-peak hours resulted in 23.4% increase in annual savings/Cycles completed and increase in cycle life to 10 years and also Lithium ion Batteries were observed to give a positive NPV only at escalated tariff rates and a surcharge in Peak Tariff. Whereas in case of VRLA, only in case of a tariff surge, NPV comes to be positive. Results prove that Li ion High Energy Batteries are feasible for the site due to high Energy throughput, high roundtrip Efficiency, Deep discharge Capabilities and temperature resistance.
Keywords: Battery Energy Storage Systems (BESS), Energy Arbitrage, Li-ion batteries, Battery life degradation, Cost Benefit Analysis.
