How to optimize the lifetime profit of a Bess project?

First, a more accurate assessment of the expected lifetime profit can be obtained in the planning phase of a BESS project. Second, if the aging behavior towards the EOL is known, the aging cost can be set accordingly to optimize the lifetime profit for the operation phase of a BESS project.

Is Bess feasible for Energy Arbitrage?

The result shows that under the current empirical estimation of the battery cost and lifetime, BESS is not feasible for energy arbitrage in most of the European electricity markets. However, BESS shows clearly and significantly higher potential in providing frequency support services.

Is Bess profitable in Norway?

The implied IRR has reached more than 30% in 2021 when both the price level and the price volatility are high. In contrast, BESS with the same configuration would not be profitable in Norway. Still, it should be noted that the bidding zone DK2 (Eastern Denmark) is basically the island of Zealand (where Copenhagen is located) and the nearby islands.

How much money does a Bess make a year?

With aging cost of 0 EUR/kWh, the BESS reaches its EOL at 80% SOH after 3.0 years and 5525.7 FECs, while obtaining a cumulative profit of 265.9 kEUR, or 221.6 EUR/kWh with regards to the initial nominal capacity of 1.2 MWh.

Is Bess a feasible solution in Europe?

In summary, comparing the major electricity markets in Europe, BESS has shown its potential in becoming a feasible solution in Central Western Europe and parts of Northern Europe by providing frequency regulation services.

Does the MPC framework increase the lifetime profitability of a Bess?

The results show that using the MPC framework to determine the optimal aging cost can significantly increase the lifetime profitability of a BESS, compared to the prevalent approach of selecting aging cost based on the cost of the battery system.