Cost-benefit analysis of storage devices for provision of multiple services in MV distribution networks

Significant research is currently underway for investigating how energy storage devices could facilitate the increased adoption of distributed generators (DG) and heat pumps across distribution networks without compromising on power quality and system security. This paper presents a comprehensive cost-benefit analysis on two storage technologies - Pb-acid and Li-ion - to establish their economic viability for providing distribution network services while considering their associated investment and operation and maintenance (O&M) costs. Using an actual 11 kV distribution network model along with two weeks of substation data from Northern Ireland, the study first identifies potential network security violations resulting from increased DG penetrations. An optimization formulation incorporating storage devices is then solved, and financial benefits quantified corresponding to the following network services being offered: renewable curtailment minimization and peak shaving. The financial benefits are compared vis-à-vis the investment and O&M costs for storage devices, and it is demonstrated how the provision of the previously mentioned network services using batteries can potentially open up additional revenue streams for their owners. The study recommends that in order to make storage investments even more attractive, further reduction in storage prices along with the opportunity to offer additional network services (e.g., loss reduction) could be considered.