CUED Publications database

Cloud energy storage for grid scale applications in the UK

Rappaport, RD and Miles, J (2017) Cloud energy storage for grid scale applications in the UK. Energy Policy, 109. pp. 609-622. ISSN 0301-4215

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Abstract

In this paper, the UK’s electricity market and battery technologies were researched in order to determine the economic feasibility of aggregating domestic batteries for grid-scale services. A feasibility study was conducted under three scenarios in order to estimate the value of batteries for domestic households in the UK. A revenue optimization model was built using historical market data, and both technical and commercial parameters of Advanced Lead-Acid (ALA) and LithiumIon (LI) battery technologies. In this model, an aggregated system of 5000 batteries was simulated and used to compare and stack value streams of seven different grid-scale services in the UK, including energy arbitrage, reserve and frequency regulation services. The results showed that although using a battery system for domestic services is currently not economically viable for a household owner, grid-scale provision of dynamic frequency response and fast reserve services yield sufficient annual revenue to compensate for these losses. The maximum annual profit margin per household obtained was £ 532-692 for ALA and LI batteries respectively, allowing a shared margin of £ 230-300 after accounting for household costs. In the future, the potential of these business models was estimated to increase substantially due to an increase in value of ancillary services, technological improvements and cost reductions in battery technologies, and possible collaborations with network operators, electric vehicle and renewable power companies. Current regulatory barriers in the UK, such as a double payment structure for storage operators, lack of subsidy and lack of separate definition for storage devices, hinder the required investment and implementation of battery technologies.

Item Type: Article
Subjects: UNSPECIFIED
Divisions: Div A > Energy
Depositing User: Cron Job
Date Deposited: 07 Nov 2018 20:17
Last Modified: 10 Apr 2021 01:08
DOI: 10.1016/j.enpol.2017.07.044