The Spanish electricity market for industrial customers contains six periods P1 to P6 with different tariffs for power (kW) and consumed energy (kWh). The tariffs for each period vary depending on month of the year and are different according to the region in Spain. The contracted power has to be defined for each period P1 to P6 with a electricity provider like Endesa. Certain penalties have to be paid in case the required power is higher than the contracted. The power values are defined as a measured 15 minutes average.
Savings Due to Battery Operation
Savings can be achieved by reducing the contracted power and covering peaks, that exceed the threshold with the battery to avoid or reduce penalties. This application, called peak shaving is already well known and established in markets like Germany and the UK.
To evaluate the business case a financial model has to be developed, which contains:
- Prices for consumed energy (kWh) and contracted power (kW)
- Valid periods (P1 to P6) at every time depending on month and region
- Algorithms for battery operation considering SOC, usable capacity, maximum C-rates for charge and discharge as well as the degradation of the battery capacity in each year of its lifetime
- Cost Structure of the storage system like investment for turn key battery system, transportation, commissioning and installation as well as costs for operation and maintenance
- Financial analysis including Net Present Value (NPV) calculation, Internal rate of Return (IRR) and amortization duration is necessary to evaluate the business case
Depending on the electricity consumption profile of the Commercial & Industrial site a business case can be developed successful.
Please feel free to contact us for further information and support on the development of business cases for your commercial or industrial site.