Economic viability of energy storage systems in commercial scale buildings equipped with solar power plants

Abstract

This master’s thesis focuses on the economic viability of energy storage system in commercial scale building equipped with solar power plant. With the green transition, more and more people are implementing solar power solutions in their properties. In addition, the increase in penetration of wind power cause fluctuations in the price of electricity. The aforementioned factors create challenges for energy balance in terms of production and consumption, increasing the need for energy storage. This study focuses on Finnish market, evaluation of the effects and operation of different energy storage methods.

The study aims to find viable energy storage methods, analyze their economic viability, and assess the feasibility of integrating energy storage solutions with commercial buildings equipped with photovoltaic installations. In order to achieve this, different energy storage methods are considered, such as mechanical, thermodynamic and electrochemical storages. The most potential alternatives are evaluated for commercial buildings. Geopolitical and environmental issues are also considered relating to specific energy storage methods.

The research uses a simulation-based approach, which aims to simulate the operation of energy storages of different sizes and efficiency in different operating scenarios. The simulation considers factors such as solar energy production, electricity spot-price, storage technology costs, electricity reserve market participation and lifetime assessments. The simulation is conducted in three (3) stages, with each preceding stage serving as a foundation for the subsequent stage of the simulation. The first simulation focuses on load-shifting in the form of storing self-produced solar energy for later use and allowing acquisition of inexpensive electricity to be utilized at a later time. In the second simulation, energy storage is allowed to participate in the electricity reserve market. Specifically, FCR-N hourly market. The third simulation is to determine the most efficient operation among various operating behaviors. Afterwards, the impact of peak power shaving on economic profitability was included based on results obtained from the simulation.

The simulation is conducted using hourly usage and production measurement data from commercial property in southern Finland in 2023, along with actual distribution and electricity prices. The simulation results demonstrate that the utilization of energy storage can be financially advantageous in specific situations. Energy storage systems with a greater charging capacity exhibited greater financial performance in all simulation situations. Regarding load-shifting operations, investing in energy storage may not be considered profitable for properties connected to medium-voltage power systems. The financial viability of energy storage was improved by increasing participation in the electricity reserve market and implementing peak power shaving.

In conclusion, this thesis provides valuable behavior analyzation of different size energy storage systems and integration of energy storage systems with commercial-scale solar power installations. Despite the substantial upfront costs, energy storage systems offer long-term financial benefits, enhance the profitability and competitiveness of commercial properties due to their versatility.