Economic Analysis of Typical Business Model of Grid-side Energy Storage Considering Full Life Cycle

Grid-side energy storage is an indispensable part of the future power system, and its market scale development is at a critical stage. To accelerate the development of the energy storage business model and ensure that energy storage can obtain market income, this paper proposes an economic analysis method for the typical business model of grid-side energy storage considering the full life cycle. Firstly, the transaction mechanisms of two typical business models of grid-side energy storage participating in the spot market and peak shaving market are introduced. Then, the costs of the full life cycle, including the initial investment, O&M, battery swapping and capital of grid-side energy storage, are analyzed. Finally, a method for calculating the economic benefits of grid-side energy storage under a typical business model is proposed, and the relationship between the internal rate of return of energy storage and electricity price & market clearing price is obtained through example analysis, verifying the effectiveness of the method proposed herein.