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1 Introduction For distribution services batteries are preferred as they can be installed almost completely independently of site [26]. Based on a 10 MW and 60 MWh system for distribution services, a Li-ion system would cost 272 - 338 $ MWh-1, against 184 - 338 $ MWh-1 for a VRFB [26]. Whilst the difference in electricity spot price between charging and discharging is likely below this cost, batteries can provide other services to the grid, increasing total revenue [28], (Table 1.2). Table 1.2: Electricity grid services that can be provided by energy storage systems, [28]. Service / revenue Energy arbitrage Spin/non-spin reserves Frequency regulation Voltage support Black start Peaking capacity Transmission deferral Distribution deferral Time-of-use PV self-consumption Demand charge reduction Backup power Demand response Definition of service Average daily “off-peak” to “peak” market price changes. Extra generating capacity available from generators connected to the grid. Maintains the grid frequency at close to 50 Hz. Maintains the voltages on the system within Code limits. Restarts system after a blackout, generating station must self-start without using power from the grid. Plants that run only during periods of high demand for electricity. Savings made by deferring transmission upgrades. Savings made by deferring local network upgrades. Encourages use of electricity when demand on the system is lowest. Enables customers to source more of their energy demand from PV. For large commercial customers, reflects the extra cost of distribution equipment to service customers with high peak power demand. Provides power to a customer in the event of a blackout. Rewards customers who alter demand to reduce grid demands. 9PDF Image | Electron Transfer Kinetics in Redox Flow Batteries
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