Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8–10, 2023, Guangzhou, China

Research Article

The Economic Value of Independent Energy Storage Power Stations Participating in the Electricity Market

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  • @INPROCEEDINGS{10.4108/eai.8-12-2023.2344682,
        author={Hongwei  Wang and Wen  Zhang and Changcheng  Song and Xiaohai  Gao and Zhuoer  Chen and Shaocheng  Mei},
        title={The Economic Value of Independent Energy Storage Power Stations Participating in the Electricity Market},
        proceedings={Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8--10, 2023, Guangzhou, China},
        publisher={EAI},
        proceedings_a={MSIEID},
        year={2024},
        month={4},
        keywords={independent energy storage electricity market economic value},
        doi={10.4108/eai.8-12-2023.2344682}
    }
    
  • Hongwei Wang
    Wen Zhang
    Changcheng Song
    Xiaohai Gao
    Zhuoer Chen
    Shaocheng Mei
    Year: 2024
    The Economic Value of Independent Energy Storage Power Stations Participating in the Electricity Market
    MSIEID
    EAI
    DOI: 10.4108/eai.8-12-2023.2344682
Hongwei Wang1, Wen Zhang1, Changcheng Song1, Xiaohai Gao1, Zhuoer Chen1, Shaocheng Mei2,*
  • 1: State grid Shandong electric power company
  • 2: North china electric power university
*Contact email: 2540886188@qq.com

Abstract

Under the "dual carbon" goal, the proportion of new energy generation in new power systems is increasing, and the volatility and uncertainty of power output are also becoming more significant. Energy storage, as a flexible resource, can effectively compensate for the shortcomings of new energy generation. Therefore, the country has continuously introduced policies to encourage the development of independent energy storage and mandatory new energy allocation and storage. But as the scale of energy storage capacity continues to expand, the drawbacks of energy storage power stations are gradually exposed: high costs, difficult to recover, and other issues. This article establishes a full life cycle cost and benefit model for independent energy storage power stations based on relevant policies, current status of the power system, and trading rules of the power market. A typical electrochemical energy storage power station in Shandong is selected, and its economic value is analyzed by calculating its cost and benefit status after operation. Finally, it is suggested that the construction of energy storage facilities should actively switch to independent energy storage and that independent energy storage facilities should actively participate in auxiliary services.