Cost-benefit analysis tool and control strategy selection for lithium-ion battery energy storage system

Battery Energy Storage Systems (BESSs), with their flexible and fast-ramping capabilities, can provide multiple benefits to electric power grids and could become a key solution for grid stabilization and integration of higher share of renewable energy sources. However, the deployment of large-scale BESSs is hindered by several uncertainties due to their relatively high capital costs, and to the difficulty to evaluate their performance, their lifetime and thereby their potential financial benefit. This paper formulates an optimization problem aiming at finding a new and efficient control strategy for BESSs in grid stabilization application, and describes a cost-benefit analysis tool developed to support the resolution of the optimization problem and to technically and economically assess BESSs. The first simulation results show that, with an appropriate selection of control parameters, the lifetime and thereby the total net profits from a BESS can be increased.