Increase electricity prices to compensate for energy storage

What is energy storage system capacity cost?

Energy storage system capacity cost as a function of energy storage roundtrip efficiency for various technologies (boxes) compared to breakeven capacity costs for various loan periods (LP).

How does a new power system affect energy costs?

Under the new power system, a high proportion of new energy is widely connected to the power grid, and it is necessary to increase investment in centralized and distributed energy storage, flexible resource regulation, and transmission and distribution grids, resulting in an increase in power system costs.

How can energy cost be reduced by avoiding high energy prices?

Shrouf et al. developed a mathematical model to minimize energy cost and proposed genetic algorithm (GA) technology to obtain optimal results. The results showed that energy cost could be significantly reduced by avoiding periods of high energy prices.

Should electricity capacity price be increased?

Under the condition of ensuring the basic stability of the overall electricity price, the electricity capacity price of users with high and medium load rates should be increased, and their electricity price should be moderately reduced.

What should the electricity capacity price be reduced based on?

The electricity capacity price charged based on maximum demand should be reduced to 38.05 CNY/kW month, and the electricity capacity price charged based on the transformer capacity should be reduced to 25.37 CNY/kVA month.

Can energy storage reduce peak demand?

The peak demands are generally focused to only 400 h per year (Rastler, 2010) and can be addressed by energy storage technologies if they are technologically mature and affordable (Hogan, 2016), to reduced cost associated with peak demand (Zafirakis et al., 2016).