Title: Economic analysis of grid-side electrochemical energy storage station considering environmental benefits - a case study

Authors: Caiqing Zhang; Yuanzi Xu

Addresses: School of Economic Management, North China Electric Power University, Huadian Road, Beishi Dist., Baoding, 071000, China ' School of Economic Management, North China Electric Power University, Huadian Road, Beishi Dist., Baoding, 071000, China

Abstract: Electrochemical energy storage stations (EESS) can integrate renewable energy and contribute to grid stabilisation. However, high costs and uncertain benefits impede widespread EESS adoption. This study develops an economic model for grid-side EESS projects, incorporating environmental and social factors through life cycle cost assessment. Economic indicators, including net present value (NPV), are analysed with sensitivity assessment. Using a South China case study, environmental and social benefits substantially elevate NPV to 1,482,189.62 USD, highlighting the model's ability to comprehensively capture project value. The findings offer policy recommendations to enhance economic viability and promote the large-scale deployment of EESS for effective grid management.

Keywords: economic analysis; electrochemical energy storage; grid-side energy storage; life cycle cost; environmental benefits; renewable energy integration; load shifting; net present value; NPV; benefit-cost ratio; internal rate of return; sensitivity analysis.

DOI: 10.1504/IJGW.2024.138439

International Journal of Global Warming, 2024 Vol.33 No.2, pp.141 - 156

Received: 13 Oct 2023
Accepted: 20 Dec 2023
Published online: 03 May 2024 *

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