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Cloud energy storage for grid scale applications in the UK

Accepted version
Peer-reviewed

Type

Article

Change log

Authors

Rappaport, Ron D 
Miles, John 

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.

Description

Keywords

33 Built Environment and Design, 4802 Environmental and Resources Law, 44 Human Society, 48 Law and Legal Studies, 4407 Policy and Administration, 3304 Urban and Regional Planning, 7 Affordable and Clean Energy

Journal Title

Energy Policy

Conference Name

Journal ISSN

0301-4215

Volume Title

109

Publisher

Elsevier BV