Next Article in Journal
Model-Based State Feedback Controller Design for a Turbocharged Diesel Engine with an EGR System
Previous Article in Journal
DC Flashover Performance of Ice-Covered Composite Insulators with Parallel Air Gaps
Article Menu

Export Article

Open AccessArticle
Energies 2015, 8(6), 5000-5017; doi:10.3390/en8065000

Economic Value of Li-ion Energy Storage System in Frequency Regulation Application from Utility Firm’s Perspective in Korea

1
College of Business Administration, Inha University, Incheon 431050, Korea
2
College of Business Administration, University of Seoul, Seoul 130743, Korea
3
Graduate School of Logistics, Incheon National University, Incheon 406772, Korea
4
College of Business and Technology, Seoul National University of Science and Technology, Seoul 139743, Korea
5
KEPCO Research Institute, Daejeon 305760, Korea
*
Author to whom correspondence should be addressed.
Academic Editor: Sheng S. Zhang
Received: 20 March 2015 / Revised: 13 May 2015 / Accepted: 20 May 2015 / Published: 28 May 2015
View Full-Text   |   Download PDF [1685 KB, uploaded 28 May 2015]   |  

Abstract

Energy Storage Systems (ESSs) have recently been highlighted because of their many benefits such as load-shifting, frequency regulation, price arbitrage, renewables, and so on. Among those benefits, we aim at evaluating their economic value in frequency regulation application. However, unlike previous literature focusing on profits obtained from participating in the ancillary service market, our approach concentrates on the cost reduction from the perspective of a utility firm that has an obligation to pay energy fees to a power exchange. More specifically, we focus on the payments between the power exchange market and the utility firm as a major source of economic benefits. The evaluation is done by cost- benefit analysis (CBA) with a dataset of the Korean market while considering operational constraint costs as well as scheduled energy payments, and a simulation algorithm for the evaluation is provided. Our results show the potential for huge profits to be made by cost reduction. We believe that this research can provide a guideline for a utility firm considering investing in ESSs for frequency regulation application as a source of cost reduction. View Full-Text
Keywords: energy storage system; economic value; utility firm; frequency regulation; ancillary services energy storage system; economic value; utility firm; frequency regulation; ancillary services
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Hur, W.; Moon, Y.; Shin, K.; Kim, W.; Nam, S.; Park, K. Economic Value of Li-ion Energy Storage System in Frequency Regulation Application from Utility Firm’s Perspective in Korea. Energies 2015, 8, 5000-5017.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Energies EISSN 1996-1073 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top