Technical-Economical Evaluations for Distributed Storage Applications: An Italian Case Study for a Medium-Scale Public Facility

Abstract

Time-of-use energy cost management involves the use of storage by customers to reduce their electricity bills. This can be accomplished by charging the storage during off-peak time periods, when electricity energy prices are low, and discharging it during times when on-peak energy prices are applied. This article addresses the question whether it is economically viable to install medium-scale distributed storage devices in the power system designed to lower the electricity cost for a customer-side application, assuming flexible electricity tariffs. The technical/economical evaluation is carried out referring to Lithium ion (Li-ion), Sodium Sulphur (NaS) and Vanadium Redox Battery (VRB) technologies, performing a parametric analysis by changing the capital cost of the batteries and the difference between the maximum and minimum electricity price. A case study is performed to show the advantages/disadvantages of the proposed approach