An economic assessment of behind-the-meter photovoltaics paired with batteries on the Hawaiian Islands

Wu, Di; Ma, Xu; Balducci, Patrick J.; Bhatnagar, Dhruv

doi:10.1016/j.apenergy.2021.116550

An economic assessment of behind-the-meter photovoltaics paired with batteries on the Hawaiian Islands

Journal Article · Thu Jan 28 23:00:00 EST 2021 · Applied Energy

DOI:https://doi.org/10.1016/j.apenergy.2021.116550· OSTI ID:1763908

^[1]; ^[1]; Balducci, Patrick J. ^[2]; ^[1]

Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Argonne National Lab. (ANL), Lemont, IL (United States)

Due to the natural variability and uncertainty, the ever-increasing penetration of solar generation in Hawaii presents challenges to power grid operators to maintain reliable system operation. Demand response (DR) has the potential to be a cost-effective tool for Hawaii to reach its aggressive renewable energy goals while maintaining the reliability of power grids. The Hawaii Public Utility Corporation has approved the Hawaiian Electric Company’s revised portfolio of DR programs. Additionally, the companies are in the process of developing tariffs, rate schedules, and grid services purchase agreements. This paper presents a comprehensive economic analysis for distributed photovoltaics (PV) paired with battery energy storage systems (BESS) for three new DR programs, including fast frequency response, capacity grid service, and regulation reserve. Optimal dispatch and sizing methods are developed for the paired system considering different tariff schedules and PV compensation programs across five islands. It was found that while the best resource configuration and potential economic benefits vary with tariff structure, integrating BESS with PV can be optimally dispatched to generate multiple value streams simultaneously. Compensation from DR programs is an important value stream to help increase the cost-effectiveness of the integrated system.

View Accepted Manuscript (DOE)

Research Organization:: Pacific Northwest National Laboratory (PNNL), Richland, WA (United States)

Sponsoring Organization:: USDOE Office of Electricity (OE)

Grant/Contract Number:: AC05-76RL01830

OSTI ID:: 1763908

Alternate ID(s):: OSTI ID: 2325278
OSTI ID: 1855978
OSTI ID: 23187417

Report Number(s):: PNNL-SA--156151

Journal Information:: Applied Energy, Journal Name: Applied Energy Vol. 286; ISSN 0306-2619

Publisher:: ElsevierCopyright Statement

Country of Publication:: United States

Language:: English

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