SHORT-TERM ENERGY STORAGE FOR STABILIZING THE HIGH VOLTAGE TRANSMISSION GRID: A REAL OPTIONS ANALYSIS

摘要

The aim of the customer value analysis was to determine the customer value of the TSO in the United Kingdom for purchasing a short-term energy storage device to increase system inertia. The challenge is that the customer value is difficult to be valued monetarily, as inertia is not traded yet. A blackout will not affect the TSO monetarily, as long as he complies with the government guidelines. Additionally, the TSO is not a profit-maximizing entity but nonetheless has to be economically profitable. Due to the fact that the government funds the investment costs, it can be important to compare them with the costs of a blackout. If the costs of one blackout such as the historical blackout in Italy (€ 390 million, 2003; IEC, 2014) could be avoided in the UK, the investment of SVC PLUS ES for compensating the whole lack of inertia in the UK would be beneficial.The approach of determining the profit by providing inertia with saved primary reserve with Z=30% of the rated power result in positive ROV and NPV for each SVC PLUS ES device. For the larger units, the values are larger, because the investment costs compared to the unit sizes are smaller. The difference between the NPV and the ROV is the option value, because in the ROA the investment is chosen at points where it is value-maximizing.Comparing other alternative solutions (SVC PLUS, SVC PLUS ES and SynCon) for stabilizing the transmission grid, the largest unit SVC PLUS is the most economical solution when neglecting the profit due to providing inertia. In the case of remuneration of inertia, or participating in the primary reserve mechanism in the UK, the largest unit of the SVC PLUS ES is the most economical solution.It has to be taken into account that the measures for improving the grid stability have to be realized although they seem unprofitable for a customer, because blackouts have to be avoided for sure; otherwise, the economic damages are immense, which will also imply a loss of reputation for the government and the TSO. The physical arguments are therefore more important. So even when the calculated customer value is negative, the customer value can be larger, but not being expressed by financial figures. But the customer can compare the options and choose the option, which generates the lowest economic losses.