Economic viability of NaS battery plant in a competitive electricity market

Unlike markets for storable commodities, electricity markets depend on the real-time balance of supply and demand. Although much of the present-day grid operate effectively without storage technologies, cost-effective ways of storing electrical energy can make the grid more efficient and reliable. One of the emerging electric energy storage technologies is NaS (Natrium Sulfur) battery system. Recently, this technology is strongly considered due to its enough technological maturation and less environmental impacts. This work addresses the economic viability of NaS battery plant for participation in a competitive electricity market as a power producer. In order to achieve this goal, first an appropriate Self-Scheduling (SS) approach must be developed to determine its maximum potential of expected profit among multi-markets such as energy and ancillary service markets. Then, the utilization of this technology is economically analyzed using Internal Rate of Return (IRR) index. Finally, the amounts of needed financial supports are determined for choosing the NaS battery technology when an investor would like to invest on electric energy storage technologies. Two conventional financial support mechanisms are considered: decreasing the tax rate and dedicating the gratuitous loan. Numerical results for a case study are discussed.