Economic Analysis of Li-Ion Battery Energy Storage System

Battery energy storage systems (BESS) serve as vital elements in deploying renewable energy sources into electrical grids in addition to enhancing the transient dynamics of those power grids. An issue facing operators of BESSs and those interested in investing in them are the empirical constraints of BESSs' economic practicality. Considering the static and dynamic expenses of implementing, operating, and maintaining a BESS, optimal operation is a pivotal constituent. Optimizing the operation of BESS would aid in maximizing the profit margin of operators, maximizing the lifespan of BESS, and ushering in the integration of these systems into power grids. This paper details an application program that analyzes a grid connected BESS in common situations an operator may encounter and outputs the optimal action to be conducted. The provided results of this application program stem from actual Local Marginal Prices, load data, and generation data gathered from Southwest Powerpool and Texas Tech University's wind turbines. Through the use of this application program, operators can capitalize on the economic practicality of BESS while maximizing these systems' lifespans.