Economy of Battery Energy Storage System for Large Industrial User-side

The user-side energy storage system has a high cost, and it is difficult to achieve economic efficiency only by peak-valley arbitrage. This paper selects large industrial users who adopt two-part power pricing system to establish a cost and revenue model suitable for large industrial user-side battery energy storage system, which is used to comprehensively calculate the various costs and revenues of the system. Secondly, the improved levelized cost of electricity (LCOE) model and the internal rate of return (IRR) are used to compare the economy of the four battery energy storage systems in the case area. The results show that the economic efficiency of the battery energy storage system on the large industrial user-side is lead-carbon batteries, lithium iron phosphate batteries, sodium-sulfur batteries, and vanadium redox flow batteries in descending order. In areas with high peak-valley spread, lead-carbon battery, sodium-sulfur battery and lithium iron phosphate battery are all economical, while in areas with low peak-valley spread, only lead-carbon battery and lithium iron phosphate battery have economy. When the peak-valley spread is not clear in the future, reducing the cost of energy storage and seeking new forms of profit are the only methods for large-scale application of energy storage on the user-side in the future.