Economy, financial, and regulatory method for the integration of electrical energy storage in a power network

In this paper, we propose a method and economical-financial model based on actual regulation to evaluate the use of electrical energy storage in a power network for different business cases and scenarios. The scenarios are real economy models that involve the tariff formulae for the remuneration of the distribution business and laws applied to renewable energies in Colombia. The proposed method is applied by performing different variations of demand and costs, as well as sensitivities. Also included here, are the results of computational application with real data and cost approximation models applied in this research. The proposed method exposes potential barriers, challenges, and the feasibility of the incorporation of energy storage. Based on the method, a series of cases were developed to evaluate the benefit/cost ratio that energy storage systems can provide based on the type of service supplied. The models are focused on: Battery storage with solar photovoltaic self-generation, Storage in primary frequency regulation, and Storage in secondary frequency regulation (AGC).