A Lean Investment Method for User-Side Energy Storage Based on Energy Performance Contracting
Aiming at the problem of how to measure the investment of energy storage systems under the Energy Performance Contracting(EPC), this paper proposes a comprehensive and effective lean investment measurement method. This approach comprehensively considers the initial investment of the energy storage system, operation and maintenance costs, the benefit-sharing mechanism of contract energy management, and the market participation strategy, and calculates the Internal Rate of Return (IRR) and the Net Present Value (NPV) through the establishment of a mathematical model to provide a scientific basis for investment decisions. Furthermore,the economic benefits under different profit models, such as peak-valley arbitrage, peaking auxiliary service and frequency modulation(FM) auxiliary service, are also analyzed, and the impact of government green incentives on enhancing the project economics is explored. By analysing the arithmetic examples, the effectiveness and feasibility of the proposed method in practical applications are verified, and decision support is provided to promote the wide application of energy storage technology in energy transition.
Authors
- Jianing Wang
- Shuai Wang (ORCID: https://orcid.org/0000-0002-8597-3738)
- Yu Zhou (ORCID: https://orcid.org/0000-0002-8912-1719)
- Yang Liu
- Xingong Cheng
- Shengnan Zhao
Institutions
- University of Jinan (CN)
- Shanghai Electric (China) (CN)
Publication Details
- Published
- 2024-10-25
- DOI
- https://doi.org/10.1109/appeec61255.2024.10922530
- Primary Topic
- Power Systems and Renewable Energy
- Type
- article
- Field-Weighted Citation Impact
- 0.00