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

Institutions

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
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

A Lean Investment Method for User-Side Energy Storage Based on Energy Performance Contracting

Jianing Wang, Shuai Wang, Yu Zhou, Yang Liu et al.
Power Systems and Renewable Energy
article

A Lean Investment Method for User-Side Energy Storage Based on Energy Performance Contracting

Jianing Wang, Shuai Wang, Yu Zhou, Yang Liu, Xingong Cheng, Shengnan Zhao
article en

Abstract

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.

University of Jinan (CN), Shanghai Electric (China) (CN)
Affordable and clean energy
Openalex Percentile: Top 66%
Power Systems and Renewable Energy
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

A Lean Investment Method for User-Side Energy Storage Based on Energy Performance Contracting — Jianing Wang, Shuai Wang, et al. · (2024) | TGRS Research Map | TGRS