Investment Decision-Making Using Probabilistic Life Cycle Costing – Comparing Flooded Lead-Acid and Lithium Ion Batteries for Power Supply Backup in Substations
Paper number
1747Conference name
CIRED 2019Conference date
3-6 June 2019Conference location
Madrid, SpainPeer-reviewed
YesMetadata
Show full item recordAuthors
Jürgensen, Jan Henning, KTH Royal Institute of Technology, SwedenMajlund, Åsa, KTH Royal Institute of Technology, Sweden
Gustafsson, Patrik, KTH Royal Institute of Technology, Sweden
Eiríksson, Eysteinn, KTH Royal Institute of Technology, Sweden
Hilber, Patrik, KTH Royal Institute of Technology, Sweden
Abstract
During a power outage, substations require a power supply back-up in form of batteries to resume the control functionality. Traditionally, Flooded Lead-Acid (FLA) batteries are utilized in substations as power back-up. Even though new battery technologies have emerged, it is still the battery of choice. Lithium-Ion (Li-Ion) batteries have found wide acceptance in other areas but rarely as power back-up in substations. This is due to the high initial investment costs and the lacking experience in operation. In this study, we compare the FLA and Li-Ion batteries with a probabilistic life cycle analysis that considers both the capital costs and operational costs occurring over the whole life cycle. Applying probabilistic models and Monte Carlo simulations, the net present value can be presented as a distribution. The resulting distribution considers the risk and uncertainties in the input parameter and therefore enables a better decision-making. The results of this study shows that the Li-Ion battery has the lower average life cycle costs with a lower uncertainty.Publisher
AIMDate
2019-06-03Published in
Permanent link to this record
https://cired-repository.org/handle/20.500.12455/551http://dx.doi.org/10.34890/779