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Open AccessArticle

Break-Even Points of Battery Energy Storage Systems for Peak Shaving Applications

Department of Electrical Engineering, University of Chile, 8370451 Santiago, Chile
School of Electrical, Computer and Energy Engineering, Arizona State University, P.O. Box 875706, Tempe, AZ 85287, USA
Author to whom correspondence should be addressed.
Energies 2017, 10(7), 833;
Received: 24 April 2017 / Revised: 13 June 2017 / Accepted: 15 June 2017 / Published: 22 June 2017
(This article belongs to the Section Energy Storage and Application)
PDF [1702 KB, uploaded 23 June 2017]


In the last few years, several investigations have been carried out in the field of optimal sizing of energy storage systems (ESSs) at both the transmission and distribution levels. Nevertheless, most of these works make important assumptions about key factors affecting ESS profitability such as efficiency and life cycles and especially about the specific costs of the ESS, without considering the uncertainty involved. In this context, this work aims to answer the question: what should be the costs of different ESS technologies in order to make a profit when considering peak shaving applications? The paper presents a comprehensive sensitivity analysis of the interaction between the profitability of an ESS project and some key parameters influencing the project performance. The proposed approach determines the break-even points for different ESSs considering a wide range of life cycles, efficiencies, energy prices, and power prices. To do this, an optimization algorithm for the sizing of ESSs is proposed from a distribution company perspective. From the results, it is possible to conclude that, depending on the values of round trip efficiency, life cycles, and power price, there are four battery energy storage systems (BESS) technologies that are already profitable when only peak shaving applications are considered: lead acid, NaS, ZnBr, and vanadium redox. View Full-Text
Keywords: energy storage systems; peak shaving; distributed power generation energy storage systems; peak shaving; distributed power generation

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Rahmann, C.; Mac-Clure, B.; Vittal, V.; Valencia, F. Break-Even Points of Battery Energy Storage Systems for Peak Shaving Applications. Energies 2017, 10, 833.

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