Energy flexibility in industry: evaluating simultaneous battery use cases and identifying generalized electricity profile indicators

Panel: 4. Technology, products and system optimisation

Authors:
Fritz Braeuer, Karlsruhe Institute of Technology (KIT), Germany
Russell McKenna, Karlsruhe Institute of Technology (KIT), Germany
Wolf Fichtner, Karlsruhe Institute of Technology, Germany

Abstract

The application of battery storage systems (BSS) to provide electrical flexibility has attracted increasing interest over recent years. Because of their high energy demand, this is especially interesting for industrial companies. To industry, a BSS provides a pseudo-flexibility: a flexible electricity demand can be offered to grid operators and electricity markets via different use cases while the production remains unaffected. Additionally, a unique attribute of BSSs is the ability to follow different use cases simultaneously (Reid und Julve 2016). In many studies, this possibility is mentioned but the potential has not yet been thoroughly studied (Stephan et al. 2016), especially not with the focus on an industrial application.

This paper evaluates the economic potential of energy flexibility in different German small and medium sized enterprises (SMEs) through the installation of a BSS employing different uses cases simultaneously. The focus is on peak shaving, provision of primary balancing power and energy-arbitrage-trading on the German intraday and day-ahead markets. To evaluate the profitability of the BSS, the energy system of an industrial manufacturing plant is modelled as a mixed integer linear program (MILP) with the objective of minimizing total energy-related system costs. In addition, this paper develops several indicators from the analysis of the load profile, market price profile and battery characteristics. The aim is to extend existing indicators (e.g. McLoughlin et al. 2013) to describe the dynamic characteristics of the industrial load profile in more detail. This allows us to pre-evaluate the suitability of a BSS for industrial companies in future studies.

We observe that employing different use cases simultaneously substantially increases the return on investment compared to a single use case. The magnitude of the revenue depends on the volatility of the load profile and the ratio between the battery capacity and total energy consumption.

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