Life Cycle Cost-Based Operation Revenue Evaluation of Energy Storage System in Renewable Energy Aggregation Stations

With the construction of renewable-dominated electric power systems, massive renewable energy is integrated to the power grid, which results in the increase of operation risk of the power grid. The peak-shaving capacity and the renewable energy consumption of the power grid can be improved when part of energy storage equipment is equipped in the renewable power stations. However, the main focus of current research work about energy storage equipment is improving the consumption rate of renewable energy, the investment cost and the revenue of participating in the electricity market are not well considered. Therefore, a life cycle cost-based operation revenue evaluation strategy of energy storage equipment is presented for renewable energy aggregation stations. In the proposed revenue evaluation strategy, the investment, operation, and maintenance costs are considered and the revenue evaluation method of energy storage equipment is proposed considering its operation modes of peak-shaving and valley-filling and participation in the auxiliary service market. Case studies based on the actual data of the Jinyun water-photovoltaic renewable energy aggregation station with energy storage equipment in Lishui City of China are performed to evaluate the operation economy of energy storage equipment. The simulation results show that 22.2931 million CNY can be earned in its life cycle by the energy storage station equipped in Lishui, which means energy storage equipment deployed in renewable energy-dominated power systems can achieve profitability throughout its whole lifecycle while increasing the consumption level of renewable energy.