Profit analysis of thermal management systems in the energy storage field

Is pumped Energy Storage thermo-economically feasible?

The results show that the EEBRs of pumped storage and compressed air energy storage under peak load shaving condition and flywheel energy storage under frequency modulation service condition are all larger than zero, which means they are all thermo-economically feasible.

How do business models of energy storage work?

Building upon both strands of work, we propose to characterize business models of energy storage as the combination of an application of storage with the revenue stream earned from the operation and the market role of the investor.

What is energy storage optimization?

Secondly, the optimization goal is to maximize the annual net income of the energy storage system and minimize the cost of electricity per kilowatt-hour, and the key operating status is used as the constraint condition to establish an energy storage optimization configuration model.

How can energy storage be profitable?

Where a profitable application of energy storage requires saving of costs or deferral of investments, direct mechanisms, such as subsidies and rebates, will be effective. For applications dependent on price arbitrage, the existence and access to variable market prices are essential.

What is a revenue stream parameter?

The revenue stream parameter allows one to differentiate the type of support mechanisms. Where a profitable application of energy storage requires saving of costs or deferral of investments, direct mechanisms, such as subsidies and rebates, will be effective.

Which energy technologies are the most profitable?

The most examined technologies are again CAES (27 profitability estimates), batteries (25), and pumped hydro (10). Recent deployments of storage capacity confirm the trend for improved investment conditions (U.S. Department of Energy, 2020).