Battery Energy Storage System in the Finnish Real Estate Sector: Assessing Potentials for Improving Flexibility in Property Electricity Consumption and Techno-Economic Analysis
Nguyen, Khuong (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023060722397
https://urn.fi/URN:NBN:fi:amk-2023060722397
Tiivistelmä
This thesis investigates the role and impact of Battery Energy Storage Systems (BESS) in optimizing energy consumption in the Finnish real estate sector. The study delves into the use and storage of energy with BESS, their interplay with Fingrid's reserve market, Smart Readiness Indicator (SRI), and the economic evaluation of BESS.
A thorough literature review and two practical case studies of residential and commercial applications serve as the backbone of this research, presenting extensive insights into the operation, battery types, and business models of BESS in the real estate sector. The review investigates Lithium iron phosphate (LFP) batteries, identified as most suitable for real estate. The analysis also includes an examination of Fingrid's reserve market's effects on BESS within the Finnish real estate sector. The SRI is introduced as a framework for integrating BESS into real estate properties and assessing associated techno-economic benefits for property owners. The findings affirm BESS's crucial role in managing peak loads, boosting solar energy self-consumption, and participating in reserve power markets, consequently improving energy efficiency, flexibility, and grid stability. The interaction between Fingrid's reserve market, SRI, and BESS enhances consumption flexibility and optimizes electricity use in buildings. The economic value of BESS considers investment, maintenance costs, income from reserve markets, and energy savings. The case studies highlight BESS's financial potential in commercial properties, particularly with governmental subsidies. However, residential BESS installations face economic viability challenges due to high initial costs and maintenance expenses.
The study's limitations include the limited timeframe, the research gap on BESS and reserve markets' influence on SRI scores in Finland, and the lack of empirical studies. Future research should include a broader range of case studies and delve deeper into the relationship between BESS, reserve markets, and SRI. Additionally, an extensive financial analysis considering taxes and government incentives will enhance understanding of BESS's investment viability.
A thorough literature review and two practical case studies of residential and commercial applications serve as the backbone of this research, presenting extensive insights into the operation, battery types, and business models of BESS in the real estate sector. The review investigates Lithium iron phosphate (LFP) batteries, identified as most suitable for real estate. The analysis also includes an examination of Fingrid's reserve market's effects on BESS within the Finnish real estate sector. The SRI is introduced as a framework for integrating BESS into real estate properties and assessing associated techno-economic benefits for property owners. The findings affirm BESS's crucial role in managing peak loads, boosting solar energy self-consumption, and participating in reserve power markets, consequently improving energy efficiency, flexibility, and grid stability. The interaction between Fingrid's reserve market, SRI, and BESS enhances consumption flexibility and optimizes electricity use in buildings. The economic value of BESS considers investment, maintenance costs, income from reserve markets, and energy savings. The case studies highlight BESS's financial potential in commercial properties, particularly with governmental subsidies. However, residential BESS installations face economic viability challenges due to high initial costs and maintenance expenses.
The study's limitations include the limited timeframe, the research gap on BESS and reserve markets' influence on SRI scores in Finland, and the lack of empirical studies. Future research should include a broader range of case studies and delve deeper into the relationship between BESS, reserve markets, and SRI. Additionally, an extensive financial analysis considering taxes and government incentives will enhance understanding of BESS's investment viability.