Economic benefit evaluation model of distributed energy storage system considering custom power services

This paper proposes an economic benefit evaluation model of distributed energy storage system considering multi-type custom power services. Firstly, based on the four-quadrant operation characteristics of the energy storage converter, the control methods and revenue models of distributed energy storage system to provide reactive power compensation, new energy consumption, peak-valley arbitrage and other customized power services are analyzed. Secondly, an economic benefit evaluation model of custom power services is formulated, considering the life cycle degradation cost, investment payback period, net present value, and internal return rate of energy storage. Finally, demonstrate the effectiveness and superior performance of the proposed methodology through comparative studies on the economic benefits and practical value. The influence of reserve capacity ratio of energy storage converter, additional price for power quality management, peak-valley price difference, battery cost and project cycle on the annual return and internal rate of return is revealed through the sensitivity analysis, which provides the decision-making reference for battery selection and capacity allocation of distributed energy storage system participating in various custom power services.