The increasing
penetration of renewable energy
systems and
the
electrification of h
eat and transport sectors in
the
UK
have
created business opportunities for flexible technologies,
such as battery energy storage (BES).
However,
BES
investments
are
still not well understood due to a wide range and debatable
technology costs that may unde
rmine
its
business case
. In this
context, a
n
economic analysis will be established to assess the
economic viability of
current
BES
business models, particularly
associated with multiple service portfolios. Our model quantifies
the net present v
alues (NPVs) and payback periods of BES
investments considering various business models and state
-
of
-
the
-
art BES technolog
ies. We determine the
commercial viabil
ity
associated with different BES technologies and business models.
The developed model
compare
s
different technology costs,
business models
(i.e.
portfolio of
services
provided
)
and BES
lifetimes to perform a comprehensive econ
omic analysis on the
business case for investing in BES. S
everal case studies under
current
GB
market arrange
ments demonstrate that BES
investment associated with multi
-
service business model
s
offers
the best financial benefits to storage investors and achieve
payback periods within 10 years’ lifetime.