Battery storage systems feasibility study for revenue models in Germany

Abstract

The German Energy Transition puts enormous pressure on the existing grid operation and planning. At the same time, battery technology is developing rapidly and has the potential to reduce stress on the grid and increase the profitability of renewable energies if implemented in a market that provides sufficient revenues. The motivation behind this paper was to take most recent developments in the price of battery storage systems (BSS) and analyze if the primary control reserve market (CRM) could yield a profitable investment. Moreover, three different battery technologies, namely Lead-Acid (LAB), Lithium-Ion (LIB) and Vanadium Redox Flow (VRB), were investigated. Both the prequalification guidelines for the markets, and the technology’s abilities were examined. Afterwards, the complete life cycle costs were calculated and compared to the potential revenues generated through the CRM by calculating the net present value (NPV) over the BSS’s lifetime. The conclusion yields a clear picture of a recommendable technology and whether it is mature to be implemented.