Economic Analysis of Battery Energy Storage Systems
The recent advances in battery technology and reductions in battery costs have brought battery energy storage systems (BESS) to the point of becoming increasingly cost-effective projects to serve a range of power sector interventions, especially wh...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/222731592289791721/Economic-Analysis-of-Battery-Energy-Storage-Systems http://hdl.handle.net/10986/33971 |
| Summary: | The recent advances in battery
technology and reductions in battery costs have brought
battery energy storage systems (BESS) to the point of
becoming increasingly cost-effective projects to serve a
range of power sector interventions, especially when
combined with PV and where diesel is the alternative, or
where subsidies or incentives are used. Quantifying the
economic impact of BESS requires a high level of temporal
granularity in the analysis, because the time-steps required
for a reliable assessment of costs and benefits are much
shorter than the usual annual time steps of many power
sector investment projects. In short, there is as yet still
limited experience in the economic and financial analysis of
BESS investment projects particularly, in developing
countries, and one cannot yet set out with clarity what
constitutes best international practice. This report sets
out the principles and practices of BESS economic analysis
as required for the World Bank's appraisal of
investment projects that cover the range of BESS projects
likely to be encountered by the Bank over the next few years. |
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