Title: Economic and environmental analysis of a green energy hub with energy storage under fixed and variable pricing structures

Authors: Daniel Van Lanen; Jennifer Cocking; Sean B. Walker; Michael Fowler; Roydon Fraser; Steven B. Young; Leila Ahmadi; Alan Thai; Jake Yeung; Arthur Yip

Addresses: Department of Chemical Engineering, University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' Department of Chemical Engineering, University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' Department of Chemical Engineering, University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' Department of Chemical Engineering, University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' Department of Chemical Engineering, University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' School of Environment, Enterprise and Development, University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada ' University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada

Abstract: With the increased use of intermittent renewable power generation, including wind and solar power, the need for energy storage is increasing. Repurposed hybrid electric vehicle lithium ion batteries have been shown to have energy storage potential at a modest capital cost. In this paper, the authors use a two stage MatLAB simulation to create and optimise, a net zero grid-connected facility. The yearly electricity price is calculated under various scenarios using two different pricing structures, fixed feed-in tariff and market pricing. The facility under consideration is a commercial distribution centre with refrigeration, onsite generation of hydrogen for fuel cell powered forklifts, solar and wind power generation, and re-purposed batteries for energy storage. Importantly, the feed-in tariff mechanism is shown to be a deterrent to implementing energy storage onsite, as well as to increasing the use of locally generated power. Although further savings are possible in the model, when energy storage is used, close to $50,000 in savings can be seen from electrolyser load shifting that requires no capital investment. The mechanism also negatively influences indirect electricity emissions, which is not consistent with environmental objectives.

Keywords: feed-in tariffs; green energy hubs; fuel cells; materials handling; forklift trucks; energy storage; repurposed batteries; lithium ion batteries; economic analysis; environmental analysis; fixed pricing structures; variable pricing structures; hybrid electric vehicles; HEVs; hybrid vehicles; simulation; commercial distribution centres; refrigeration; hydrogen generation; solar power; solar energy; wind power; wind energy; electrolyser load shifting.

DOI: 10.1504/IJPSE.2015.071434

International Journal of Process Systems Engineering, 2015 Vol.3 No.1/2/3, pp.158 - 180

Received: 11 Oct 2014
Accepted: 23 Mar 2015
Published online: 27 Aug 2015 *

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