Investment Decision-Making Using Probabilistic Life Cycle Costing – Comparing Flooded Lead-Acid and Lithium Ion Batteries for Power Supply Backup in Substations

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Paper number
1747
Working Group Number
Conference name
CIRED 2019
Conference date
3-6 June 2019
Conference location
Madrid, Spain
Peer-reviewed
Yes
Short title
Convener
Authors
Jürgensen, Jan Henning, KTH Royal Institute of Technology, Sweden
Majlund, 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.
Table of content
Keywords
Publisher
AIM
Date
2019-06-03
Permanent link to this record
https://cired-repository.org/handle/20.500.12455/551
http://dx.doi.org/10.34890/779
ISSN
2032-9644
ISBN
978-2-9602415-0-1