Economic analysis of energy storage application based on equal demand substitution

  • Abstract: Based on equal demand substitution principle, the cost and profit of energy storage equipment owner and power system was analyzed by the scenario of stored energy was large-scale applied in distribution gird, the breakeven analysis method for energy storage equipment owner and power system operator was proposed, break-even point and feasible break-even area of energy storage equipment owner and power system was computed. The analysis result indicates, the large-scale stored energy application in distribution gird is infeasible, but as the rapid declines of energy storage cost and the rapid promotion of energy storage technology, the grid level large-scale application of energy storage will be economical.

     

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