"Optimal investment in an energy storage system"

Published in the European Journal of Operational Research

Authors:
Marta Castellini, Department of Economics and Management - University of Padua
Chiara D’Alpaos, ICEA - University of Padua
Fulvio Fontini, Department of Law Studies, University of Salento
Michele Moretto, Department of Economics and Management - University of Padua

This paper analyzes optimal investment and operation of a photovoltaic plant coupled with a battery energy storage system connected to the grid. The authors study how storage capacity, energy prices, and stochastic production and demand affect net present value and operating costs. They characterize the optimal battery size and operating strategy, showing that net operating costs are small, decrease with higher selling prices and increase with greater storage volatility.

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Marta Castellini acknowledges the financial support from the European Union - NextGenerationEU, in the framework of GRINS - Growing Resilient, INclusive and Sustainable project (GRINS PE00000018 - CUP C93C22005270001).
The views and opinions expressed are solely those of the author and do not necessarily reflect those of the European Union, nor can the European Union be held responsible for them.
Chiara D’Alpaos, Michele Moretto and Fulvio Fontini acknowledge the financial support of Fondazione Cariparo, Italy, within the Project ProTECTO - Prosumers in Transition - Energy Communities Trade Offs (grant n. 59586).