Capacity Planning and Energy Storage Solutions : A case study of capacity optimization and the possibilities of battery storage

Sammanfattning

The growing demand for electricity and capacity, driven by the electrification of society, has put more pressure on the Swedish power grid. Limited capacity in the power grid has led to delayed industrial projects, denied capacity access for companies, and socioeconomic losses. As a result of this problem, many companies subscribe to more capacity than they actually need in order to secure capacity for future expansion, further escalating the problem. A potential solution for this problem could be that companies use new innovations, such as Battery Energy Storage System (BESS), for assistance. BESS are a good solution due to its ability to reduce consumption peak loads and optimize the utilization of available grid capacity. Additionally, the BESS could help to reduce the dependence on the facility to purchase expensive electricity during peak-hours, and opt to purchase when it is cheaper. To address this issue, a case study was conducted on varying capacity plan subscription limits and different configurations of integrated BESS. The study focused on a fictive facility inspired by an existing industrial facility. A deterministic short-term planning problem was developed to optimize the facility’s energy consumption pattern, capacity requirements, and BESS usage. The model was used to evaluate and analyze multiple setups of different capacity plans and varying BESS sizes from an technical, operational, and economic point of view. The results illustrate that reducing the capacity plan subscription level and implementing a BESS, can significantly lower the operational costs of the facility. The study highlights the potential of integrating a BESS to combat the lack of capacity in the grid. The study findings also emphasize on the importance of properly sizing both the capacity plan subscription and the BESS to maximize the cost savings and to avoid pay for unused capacity.