Economic analysis of battery energy storage systems in a 110 kV grid

The decarbonization of the electricity system in Austria by 2030 requires the increased expansion of renewable energies, while at the same time the grids need to be upgraded to integrate additional generation capacity. Due to the long durations of grid expansion projects, energy storage systems, especially battery storage systems, can create additional grid capacity in the short term and thus delay the construction of power lines. This study examines whether the use of battery storage systems in 2030 is possible in terms of minimizing total system costs. For this purpose, various case studies are examined for a section of the 110 kV grid in Upper Austria in the Low-carbon Expansion Generation Optimization Model to determine the influence of flexibility options in electricity systems and the techno-economic parameters of the storage systems on their usage. The results suggest a possible economical use of battery storage for the year 2030 but the potential for postponing grid expansion is estimated to be limited, as investment in lines is usually the most cost-effective option. However, the results indicate that battery storage systems can provide flexibility in electricity systems economically if other options (imports and exports, solar curtailment) are only available to a limited extent.