Profit model of grid-side energy storage

Does energy storage configuration maximize total profits?

On this basis, an optimal energy storage configuration model that maximizes total profits was established, and financial evaluation methods were used to analyze the corresponding business models.

What is the difference between energy storage and energy grid?

In contrast to energy storage operators, the grid is able to purchase electricity at a lower price from energy storage operators during peak periods, which not only alleviates the circuit collapse caused by high circuit load during peak periods, but also ensures normal electricity consumption by users and avoids large-scale power outages.

Is energy storage a profitable business model?

Although academic analysis finds that business models for energy storage are largely unprofitable, annual deployment of storage capacity is globally on the rise (IEA, 2020). One reason may be generous subsidy support and non-financial drivers like a first-mover advantage (Wood Mackenzie, 2019).

What does a power grid company do?

The power grid company improves transmission efficiency by connecting or building wind farms, constructing grid-side energy storage, upgrading the grid, and assisting users in energy conservation, carbon offsetting, etc. to achieve zero carbon goals.

What are the benefits of a low energy consumption grid?

During the low period of electricity consumption, the grid sells the electricity to energy storage operators for storage, which not only achieves the effect of peak shaving and valley filling, but also reduces the cost and waste of resources, realizing the unity of economic and social benefits.

How do energy storage operators make a profit?

Energy storage operators develop their own cloud dispatching platform, whose main profit F1 comes from the peak-valley spread revenue obtained from energy storage dispatching minus the daily operating expenses of the platform, the specific cost–benefit function is shown in Eq. ( 1 ).