Assessing Techno-Economic Value of Battery Energy Storage with Grid-Connected Solar PV Compensation Schemes for Malaysian Commercial Prosumers

Nur Iqtiyani Ilham, Nofri Yenita Dahlan, Mohamad Zhafran Hussin

Abstract


Many efforts recently have been dedicated to modelling the solar photovoltaic (PV) integrated with battery energy storage system (BESS) to provide detailed insight on techno-economic benefits. However, some of the models did not consider the operation of solar PV-BESS with incentives such as compensation schemes, different electricity tariff rates structures and BESS unit cost. Since 2011, Malaysia's grid-connected solar PV compensation schemes have changed several times. The comparative and empirical analysis of solar PV compensation scheme with electricity tariff is crucial to facilitate prosumers' stable cost allocation, especially when coupled with BESS. Therefore, this paper presents three different solar PV compensation scheme models to address the techno-economic value of adopting BESS at flat and dynamic tariff rate structures such as Enhanced-Time-of-Use (ETOU)) and real-time wholesale tariff. A university building that holds prosumer role and flat tariff is simulated with the presence of BESS using existing compensation scheme in Malaysia (i.e., self-consumption (SELCO), Net-Energy-Metering (NEM) 2.0 and NEM 3.0) for 25 years lifetime. The results showed that the BESS's fast response and dispatch ability characteristics assisted in peak shaving, which minimised the peak demand. Under the ETOU tariff, about 60% savings on electricity bills were recorded annually for solar PV-BESS installation compared to grid-only condition. The adoption of BESS in energy arbitrage had created economic value especially in ETOU tariff. It was also found that the levelized-cost-of-electricity (LCOE) is declining by increasing the BESS unit cost reduction percentage. 


Keywords


Techno-economic; Battery energy storage; Solar PV; Net-energy-metering; Self-consumption; Electricity tariff

Full Text:

PDF

References


B. Wan, F. Adlan, and W. Sidik, “Smart Grid Development – Malaysia ’ s Perspective Smart Grid : A collection of smart devices,” 2021.

A. H. Razali, M. P. Abdullah, M. Y. Hassan, and F. Hussin, “Comparison of New and Previous Net Energy Metering (NEM) Scheme in Malaysia,” Elektr. J. Electr. Eng., vol. 18, no. 1, pp. 36–42, 2019.

R. H. G. Tan and T. L. Chow, “A Comparative Study of Feed in Tariff and Net Metering for UCSI University North Wing Campus with 100 kW Solar Photovoltaic System,” Energy Procedia, vol. 100, pp. 86–91, 2016.

Kementerian Tenaga dan Sumber Asli, “Program Net Energy Metering 3.0 (Nem 3.0) Tawar Kuota Solar 500mw Untuk 3 Inisiatif Baharu,” vol. 0, pp. 1–4, 2021.

W. Cole and A. W. Frazier, “Cost projections for utility- scale battery storage,” 2021.

J. McLaren, N. Laws, K. Anderson, N. DiOrio, and H. Miller, “Solar-plus-storage economics: What works where, and why?,” Electr. J., vol. 32, no. 1, pp. 28–46, 2019.

A. Sharma, F. Zhao, and J. W. Sutherland, “Econological scheduling of a manufacturing enterprise operating under a time-of-use electricity tariff,” J. Clean. Prod., vol. 108, pp. 256–270, 2015.

S. Le Blond, R. Li, F. Li, and Z. Wang, “Cost and emission savings from the deployment of variable electricity tariffs and advanced domestic energy hub storage management,” IEEE Power Energy Soc. Gen. Meet., vol. 2014-Octob, no. October, pp. 0–4, 2014.

S. Zhang and Y. Tang, “Optimal schedule of grid-connected residential PV generation systems with battery storages under time-of-use and step tariffs,” J. Energy Storage, vol. 23, no. March, pp. 175–182, 2019.

G. Subramani, V. K. Ramachandaramurthy, and P. Sanjeevikumar, “Techno-Economic Optimization of Grid-Connected Photovoltaic (PV) and Battery Systems Based on Maximum Demand Reduction (MDRed) Modelling in Malaysia,” Energies, 2019.

A. Hassan, Y. M. Al-Abdeli, M. Masek, and O. Bass, “Optimal sizing and energy scheduling of grid-supplemented solar PV systems with battery storage: Sensitivity of reliability and financial constraints,” Energy, vol. 238, p. 121780, 2022.

J. Liu, X. Chen, H. Yang, and Y. Li, “Energy storage and management system design optimization for a photovoltaic integrated low-energy building,” Energy, vol. 190, p. 116424, 2020.

B. Zou, J. Peng, S. Li, Y. Li, J. Yan, and H. Yang, “Comparative study of the dynamic programming-based and rule-based operation strategies for grid-connected PV-battery systems of office buildings,” Appl. Energy, vol. 305, no. February 2021, 2022.

A. M. Ashour et al., “Deployment of Rooftop Solar Photovoltaic Electrification for Residential Buildings in an Industrial City: A Study on Public Perception and Acceptance,” Int. J. Renew. Energy Res., vol. 11, no. 2, pp. 945–951, 2021.

HOMER Energy by UL., “HOMER Grid - Intelligently design and optimize behind-the-meter distributed generation systems.” [Online]. Available: https://www.homerenergy.com/products/grid/index.html. [Accessed: 29-Sep-2021].

Tenaga Nasional Berhad (TNB), “Pricing & Tariffs - Tenaga Nasional Berhad.” [Online]. Available: https://www.tnb.com.my/commercial-industrial/pricing-tariffs1. [Accessed: 14-Aug-2021].

NASA, “NASA. Surface meteorology and solar energy.” [Online]. Available: https://asdc.larc.nasa.gov/. [Accessed: 14-Aug-2021].

SEDA – Sustainable Energy Development Authority, “National Survey Report of PV Power Applications in Malaysia,” 2019.

SEDA – Sustainable Energy Development Authority, SEDA Malaysia Grid Connected Photovoltaic System Design Course. 2016.

F. J. Ramírez, A. Honrubia-Escribano, E. Gómez-Lázaro, and D. T. Pham, “Combining feed-in tariffs and net-metering schemes to balance development in adoption of photovoltaic energy: Comparative economic assessment and policy implications for European countries,” Energy Policy, vol. 102, no. September 2016, pp. 440–452, 2017.

Tenaga Nasional Berhad (TNB), “Tnb Enhanced Time Of Use (etou) - Tenaga Nasional Berhad.” [Online]. Available: https://www.tnb.com.my/faq/etou/. [Accessed: 12-Aug-2021].

H. Abdi, B. Mohammadi-ivatloo, S. Javadi, A. R. Khodaei, and E. Dehnavi, Energy Storage Systems. Elsevier Inc., 2017.

P. G. Arul, V. K. Ramachandaramurthy, and R. K. Rajkumar, “Control strategies for a hybrid renewable energy system: A review,” Renew. Sustain. Energy Rev., vol. 42, pp. 597–608, 2015.




DOI (PDF): https://doi.org/10.20508/ijrer.v12i2.13011.g8464

Refbacks

  • There are currently no refbacks.


Online ISSN: 1309-0127

Publisher: Gazi University

IJRER is cited in SCOPUS, EBSCO, WEB of SCIENCE (Clarivate Analytics);

IJRER has been cited in Emerging Sources Citation Index from 2016 in web of science.

WEB of SCIENCE in 2025; 

h=35,

Average citation per item=6.59

Last three Years Impact Factor=(1947+1753+1586)/(146+201+78)=5286/425=12.43

Category Quartile:Q4