The Economic Importance in Developing of the Electrical Storage Systems: A case study of Iran, Kerman

Document Type : Original Article


1 Department of Electrical & Computer Engineering, Shahid Bahonar University of Kerman, Kerman, Iran

2 Department of Electrical Engineering, Shahid Bahonar University of Kerman

3 Electrical Engineering Department, Shahid Bahonar University of Kerman, Kerman, Iran.

4 Department of Mechanical Engineering, Shahid Bahonar University of Kerman, Kerman, Iran


In Iran, due to low electricity price, the development of electrical energy storage systems (EESS) is not economic, currently. This paper presents new economic indicators based on the value of EESS in the electricity network. The economic value of the battery is tested for three different applications: capacity benefit, avoidance of carbon emitting and loss reduction. In doing so, a comprehensive economic analysis is performed to explore the real benefit of the spreading EESS. In addition, a new economic term, opportunity cost, is established to show the importance of EESS which is calculated by comparison levelized value of energy (LVOE) and levelized cost of energy (LCOE). The proposed model is applied to investigate the techno-economic analysis in the electricity grid of Kerman, Iran. Such analysis introduces the importance of EESS in investment from national and regional electricity network viewpoints. These results also show that at the current retail rate, the EESS developing is not beneficial but from the viewpoint of national saving, the EESS developing is very attractive. In all scenarios, the LVOE of the battery is more than its LCOE. It can be shown that via the proposed economic platform of EESS, the efficiency in the electricity network could be increased by reducing losses and capacity requirements.


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