Evaluating Options to Integrate Energy Storage Systems in Albania
1ILIRIAN KONOMI , 2VALMA PRIFTI, ANDRIN KËRPAÇI1
1Department of Hydraulic & Hydrotechnic, Faculty of Civil Engineering,
Polytechnic University of Tirana, ALBANIA
2Department of Production and Management, Faculty of Mechanical Engineering,
Polytechnic University of Tirana, ALBANIA
Abstract: - The focus of the paper is to identify for the first time the most adequate energy storage systems (ESS)
applicable in the central or bulk generation of the electricity sector in Albania. The application and integration of
ESS is a smart way to overcome the problems of timely power supply volatility and minimizing energy losses,
transmission congestion relief and upgrade deferral (top 10%), energy time shift (arbitrage), and many other
services that reduce the cost of electricity and gain the security of energy supply. The presence of high-level rates
of water discharges into the Hydropower Power Plants (HPP) and the problems of congestion in the transmission
grid are the two main problems that require new methods for addressing and solving them. To select the right form
and type of ESS that should be applied in our national energy system, E-select, a very flexible and internationally
approved model is chosen. The results of this study are necessary for achieving a flexible, cheaper, and
environmentally friendly energy system in Albania.
Key-words: ESS, E-select, Optimization, Efficiency, transmission congestion, PHES, and CAES-c
Received: May 9, 2021. Revised: May 5, 2022. Accepted: June 9, 2022. Published: July 4, 2022.
1 Introduction
Energy is a very important source for the economic
and social development of a country. Electric energy
storage is poised to become an important element of
the electricity infrastructure of the future. The storage
opportunity is driven involving numerous
stakeholders and interests and could involve
potentially rich value cues. The increase in activity
levels in different sectors of the national economy
(residential, agricultural, industrial, transport, etc.)
inflicts an increase in the final demand for energy
resources. Energy storage is the capture of energy
produced at one time for use later. Regardless of the
technology, today, most regulatory frameworks do
not reflect the role and value that energy storage can
provide. In many markets, storage is classified as a
load-modifying resource or, in some cases, it is
classified both as a generation asset and as a load
resource. This leads to energy storage systems often
facing double charges, paying levies on both the
consumption and production of electricity [1].
Electrical Energy Storage refers to a process of
converting electrical energy from a power source into
a form that can be easily stored at the desired period
and converted back to electrical energy when needed.
Such a process enables electricity to be stored during
“off-peak” hours which results in low generation
costs or from intermittent energy sources (RES). The
storage techniques have been applied so far in many
countries such as Germany (Huntorf Power Plant
with a turbine capacity of 390 MW), the USA (110
MW of installed turbine capacity), China, Japan,
Denmark, and in many other countries. In the study
of [2] Compressed air energy storage (CAES)
technologies can be used for leveling the electricity
supply and are therefore often considered for future
energy systems with a high share of fluctuating
renewable energy sources, such as e.g., wind power.
Such systems will create the clime to integrate large
RES capacities and avoid congestion or investment in
the transmission grid. In other words, the security of
supply, rational use of energy resources in the
country, diversification of the energy sector
nationwide, increase competitiveness, energy market
liberalization, as well as environmental protection,
are some of the main benefits of integrating energy
storage systems (ESS) into the national energy grid.
The assessment and the possibility of ESS integration
within the generation-transmission chain will be
realized by considering a set of variables, policy,
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physical, technical, economic, and environmental
constraints. The basic role of energy conservation is
the same in all engineering applications and serves to
absorb the energy generated at a certain point in time
and manage it later when the benefit is greater.
Understanding the role of energy storage systems
(ESS), firstly, requires a complete global picture of
installed capacities, forms, and types of various ESS
and future trends which will help decision-makers in
the country to develop clear ideas for the efficient
and sustainable electricity sector.
2 An Overview of the Albanian Energy
System
A balanced configuration of the energy system
dominated by fossil fuel inflicts an energy system
based on RES. Combining different technologies that
support new fuel types in compliance with the main
two objectives of the national energy strategy and
sector strategic action plan is mandatory to attain
2030 goals. This analysis is very complex and may
require the use of technologies that are still in the
early stages of development. In 2018 the total final
energy consumption in Albania was around 24 TWh
(2081ktoe). In table 1 the distribution of energy
consumption by sectors in Albania is given 1[3].
Indeed, the transport sector is by far the biggest
consumer of energy sharing 40% of energy
consumption in Albania.
Table 1. Distribution of primary energy supply by
demand sector, 2018. [4-5]
Sector
%
Transport
40
Residential
24
Industry
20
Services
10
Other
6
According to in 2018, Albania’s total primary energy
supply (TPES) amounted to 2131(ktoe).
Table 2. Fuels going through Final Energy Consumption in Albania, 2018 [6-7].
Crude, NGL and, Feedstock
Hydroelectricity
Solid fuels
Biomass (Fuelwood)
Solar energy
NG
Derived heat
The distribution of energy by fuel type going to the
final energy consumption in Albania is given in table
2. Crude oil covers around 57% of the final energy
consumption in the country followed by
hydroelectricity 25%, biomass as wood fuel type 8%,
solid fuel 9%, and the rest (1%) derive from solar
energy. Albania’s electricity demand grew rapidly
from 1995 to 2000 due to demographic, economic,
and social trends, including rural-to-urban migration,
increased use of electricity for space heating and
cooling and, rising living standards [8]. The Albanian
power system is dominated by hydropower,
representing more than 95% of the country’s installed
capacity with a total of 2605 MW installed. Most of
the installed capacity (1448MW) 56% is owned by
the Albanian Power Corporation (KESH) and the rest
belongs to the other producers [9]. The country has a
98MW fossil-fuel thermal power plant representing
3.76% of the total installed capacity which is not put
into operation since its construction in 2011, due to a
failure in its cooling system. The import of electricity
in Albania is highly influenced by weather and
climatic conditions and historically around
3TWh/year of electricity is imported into the regional
market [9].
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Fig. 1: Yearly electricity balance in Albania (GWh),
2007-2020 [10].
The net domestic production of electricity realized
for 2020 is 5,313 GWh. As is shown in the graph in
figure 1, the lowest electricity consumption was
recorded in 2007 with 5,767 GWh and the highest
electricity consumption is the one recorded in 2013
with 7855 GWh. By 2020, electricity consumption in
our country is 7,588 GWh. Compared to 2019, there
is a slight decrease in electricity consumption in the
country by 23.4GWh. Technical and non-technical
losses remain critical issues for the national power
system accounting for around 21.7% of the total
electricity consumption in 2019 [9]. Total electricity
consumption in 2021 amounted to 8,415 GWh.
Compared to 2020, there is a significant increase in
electricity consumption in the country by 826 GWh,
or about 11% greater. At the same time, the
electricity consumption in 2021 was 20% greater
than the average multi-year consumption period from
2004 up to 2021. This increase in electricity
consumption was influenced by the changes in the
structure of the economy and its revival after the
pandemic of COVID-19, as it happened in the
countries of the region and beyond [9].
2.1 Drin’s River Cascade HPP
Referring to 2018, especially in the Drin River
cascade, the installed Hydro Power Plant (HPP)
capacity was 1350MW and the yearly level of
discharges reaches the value of 4111 million m3. The
load (H) varies from 115.5 up to161.5m.
Fig. 2: The main characteristics of the HPP on Drini
River Cascade, 2018 [9].
The historical level of water discharges from HPPs
located in the Drin River cascade, from February up
to April 2018 is given. The related non-utilization
part of the potential energy available leads to
significant energy losses and a negative impact on
the environment, too. Other energy losses are also
declared by other independent producers in the
country, especially run-of-river HPPs types as they
lack an ESS. The presence of such rates of energy
losses and more expected due to the future RES
integration, a criterion that supports the need to
install an energy storage system is evidenced.
However, from the historical data, the level of
controlled discharges is realized in full compliance
with the three basic principles: 1) “Safety
Regulation” which are strictly related to safety
issues, 2) optimal use of the hydropower reserve, and
3) minimizing the effects of floods in the lower part
of the river.
Fig. 3: Annual water discharges from HPP of Drini
river cascade in million m3, 2002-2021 [9].
The level of discharges of the Drin River cascade
with an installed capacity of 1350 MW for the period
-3.500
-1.500
500
2.500
4.500
6.500
8.500
20072008200920102011201220132014201520162017201820192020
Eelectricity balance 2007-2020 (GWh)
Year
Consumption(GWh/Yr) Production(GWh/Yr)
System Balance(GWh/Yr)
4,07 4,2
8,59
0,116 0,350 0,253
473
1468
2170
0
2
4
6
8
10
0
500
1000
1500
2000
2500
Fierzë Koman Vau i Dejës
Average Specific Water Consumption (m3/kWh)
Unused (wasted) energy (TWh/yr)
Water Discharge Rate (mlm3/yr
0
2000
4000
6000
8000
10000
12000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Water discharge level in ml m3
Fierzë Koman Vau Dejës
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2002-2021 is given in the graph in Figure 3. The
level of discharges in 2010 resulted from 11.287
million m3 of water, accounting for 30% of the total
energy used during the year.
3 A Quick Overwiev of ESS
There are many benefits to choosing energy storage,
depending on the application and the type of
technology selected to meet that application’s
requirement. The importance and attractiveness of
energy storage as an integral part of the electrical
supply, transmission, and distribution systems are
receiving increasing attention from a wide range of
stakeholders including utilities, end-users, grid
system operators, and regulators. The focus of this
paper is to identify the form and type of storage that
can be introduced at the generation-transmission
level. Integration of ESS can serve as a generator
with a limited amount of energy (during discharge
time) and as a load (during charging time). Policies
and initiatives to reduce losses from RES during off-
peak periods, gain the security of supply and reduce
greenhouse gas (GHG) emissions have certainly been
the main drivers for the development of new power
generation technologies. Increasing the degree of
flexibility of the energy system at the national level
or beyond necessarily requires an increased degree of
utilization of stored energy sources. It can save
consumers money, improve reliability and resilience,
integrate generation sources, and help reduce
environmental impacts. The benefits of the
application of energy storage systems (ESS) in the
national energy system are presented in figure 4.
Fig. 4: The benefits of integration of ESS into the
power system.
Fig. 5: The range of services that can be provided by
electricity storage. [11]
Electricity storage will play a crucial role in enabling
the next phase of the energy transition. Along with
boosting solar and wind power generation, it will
allow sharp decarbonization in key segments of the
energy market.
As variable renewables grow to substantial levels,
electricity systems will require greater flexibility. At
very high shares of RES, electricity will need to be
stored over days, weeks, or months. By providing
these essential services, electricity storage can drive
serious electricity decarbonization and help transform
the whole energy sector. Electricity systems already
require a range of ancillary services to ensure smooth
and reliable operation (Figure 5). Supply and demand
need to be balanced in real-time to ensure the quality
of supply (e.g., maintaining constant voltage and
frequency), avoid damage to electrical appliances,
and maintain supply to all users. The International
Renewable Energy Agency analyzing the effects of
the energy transition until 2050 in a recent study for
the G20, found that over 80% of the world’s
electricity could derive from renewable sources by
that date [11]. Electricity storage capacity can reduce
constraints on the transmission network and can defer
the need for major infrastructure investment. With
the very high shares of wind and solar PV power
expected beyond 2030 (e.g., 70-80% in some cases),
the need for long-term energy storage becomes
crucial to smooth supply fluctuations over days,
weeks, or months. Research and Development
(R&D) in the way to 2030 is therefore vital to ensure
future solutions are available, have been
demonstrated, and are ready to scale up when
needed. Electricity storage can directly drive rapid
decarbonization in key segments of energy use. In
transport, the viability of battery electricity storage in
electric vehicles is improving fast. Batteries in solar
home systems and off-grid mini-grids, meanwhile,
Reserve
energy Conservation of
excess or
technically low
cost energy
Low cost of
electricity
supply
Security of
electricity
supply
Auxiliary services in
TSO & DSO
infrastructure
SMART
Energy system
Environmental
benefits
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are decarbonizing systems that were heavily reliant
on diesel fuel, while also providing the clear socio-
economic benefit of the grand transition process.
Table 3. The benefits, features, and limitations of
ESS integration [12].
The table above contains five criteria from the group
of 17 primary benefits coming from ESS integration
is given. Discharge duration indicates the amount of
time that the storage must discharge at its rated
output before charging. Capacity indicates the range
of storage system power ratings that apply for a given
benefit. The benefit indicates the present worth of the
respective benefit type for a period over 10 years
(2.5% inflation, 10% discount rate). Potential
indicates the maximum market potential for the
respective benefit over a period of 10 years. Current
energy systems are moving toward the process of
diversification and the growing role of energy storage
systems (ESS) is considered an inevitable alternative
to the path toward the process of decarbonization of
the energy sector. Innovative energy conservation
technologies are expected to make a significant
contribution in the future, especially in the case of
electrification of transport systems, increasing the
contribution of RES and nuclear resources.
According to long-term projections, they can be
converted into promising electricity generators.
Various energy storage technologies have been
proposed to store excess or non-transmissible
electricity in the form of mechanical, thermal,
gravitational, electrochemical, and chemical energy.
Energy conservation technologies are complex and
difficult to understand compared to most low-carbon
technologies. The storage value in an energy system
depends on the portfolio of electricity generation,
specifically on the relative amounts of inflexible and
flexible generation. Existing power, dispatch, and
grid models are either not broad enough to examine
all alternative forms and options of energy
conservation or have insufficient time solutions to
realistically portray the need and performance of
storage technologies. A clear interpretation of the
possibility of integrating ESS within a national
energy system can be mandatory as it can provide
positive information that supports the new energy
market model and rules.
Referring to data provided by the United States
Department of Energy in the "Global Saved Energy
Report", it is reported that 'PHES' hydro-electro-
energy storage systems account for over 96% of all
storage technologies worldwide, with an installed
capacity of over 181 GW [13]. ESS can also be
classified according to the form of electricity
conservation presented in Figure 6 [12].
Fig. 6: Schematic representation of the classification
of energy storage systems (ESS) [12].
According to [14], by the end of 2020, global
operational energy storage project capacity totaled
191.1GW, an increase of 3.4% compared to the
previous year.
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Fig. 7: Global Energy Storage Market by Total
Installed Capacity (2020) [14].
Pumped hydro energy storage comprised the largest
portion of global capacity at 172.5GW, an increase of
0.9%. Electrochemical energy storage reaches a total
capacity of 14.1GW. Among the variety of
electrochemical, lithium-ion batteries accounted for
13.1 GW, helping battery storage break 10 GW for
the first time [14].
According to [15] Pumped Hydro Electricity Storage
currently dominates total installed storage power
capacity, with 96% of the total of 176 GW installed
globally in mid-2017. The other electricity storage
technologies already in significant use around the
world include thermal storage, with 3.3GW (1.9%),
batteries, with 1.9GW (1.1%), and other mechanical
storage with 1.6GW (0.9%).
Fig. 8: Global Energy Storage Market share (%) by
Total Installed Capacity (2020) [14].
According to a brief statistical study on the trend in
ESS-related global mix (%), Lithium-Ion battery
storage continued to be unchanged and the most
widely used, making up most of all new capacity
installed reaching a value of 93% (within the
electrochemical forms) by the end of 2020 [16].
Referring to 2016, Lithium-Ion battery-based storage
technologies share more than 95% of new energy
storage systems installations (Excluding storage and
storage systems PHES) [17].
Total installed battery storage capacity stood at
around 17GW as of the end of 2020. Installations
rose 50% in 2020 compared with a mediocre 2019,
when the installation rate was flat for the first time in
a decade. Globally China, the USA, and Japan are the
countries that have the highest installed capacities of
energy storage systems in the national energy system
(Figure 9).
Fig. 9: The yearly development of ESS during 2013-
2018 [18].
As it can be seen from figure 9, the yearly
development of energy storage systems reached a
record level in 2018, the newly installed capacities
are two-fold more compared to 2017. Storage is one
of a set of options that ensures power system
flexibility and can generally be developed quickly
and modularly whenever power system flexibility is
needed [18]. As depicted in figure 9, Albania does
not exist either expected to be performed any ESS
soon, although the level of energy losses identified in
the Drini River Cascade (refer to figures 2-3) are
considerable.
90,30%
0,20%
1,80%
7,50%
0,20%
PHES
CAES
Molten Salt
Electrochem
ical
Flywheel
Lithuim Ion,
92%
Sodioum
Ion, 3.6%
Lead acid,
3.5%
Flow
battery,
0.7%
Supercapa
citor, 0.1%
Other
,0.1%
Lithuim
Ion
Sodiou
m Ion
Lead
acid
Flow
battery
Superca
pacitor
Other
0 0,5 1 1,5 2 2,5 3 3,5
0
0,2
0,4
0,6
0,8
1
1,2
2013 2014 2015 2016 2017 2018 2019
Installed capacity ESS [GW], 2013-2018
Total Korea China USA
Germany Others Albania
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Fig. 10: Annual energy storage additions by country,
2015-2020 [19].
Emerging markets are paying attention to the
application of ESS forms, engaging seriously through
the establishment of support mechanisms, as storage
as technology continues to need policy approaches
that facilitate and enable and favor their application
in different regions of the world as is clearly shown
in the graph in figure 10. Globally, 5 GW of storage
capacity was added in 2020, led by China and the
United States, each registering gigawatt-scale
addition. Utility-scale installations continue to
dominate the market, accounting for around two-
thirds of total added capacity [18]. In the IEA’s Net-
Zero Scenario by 2050, the total installed capacity
expands 35-fold between 2020 and 2030 to 585 GW.
Over 120 GW of battery storage capacity is added in
2030, up from 5 GW in 2020, implying an average
annual growth rate of 38% [18]. Key speculation for
the future of energy storage is the extent to which EV
technology developments can “spill over” into grid-
scale batteries. Given that the market for EV batteries
is already ten times larger than for grid-scale
batteries, the indirect effects of innovation and cost
reductions in mobility applications could provide a
significant boost.
After significant investments and increased use by
the electronics and transportation sectors, the average
price of a Lithium-ion battery pack in 2018 decreased
significantly by 85% less than in 2010 [17].
Production capacity for lithium-ion batteries is
expected to triple by 2022, driven by large-scale
application in the EV market.
Total electricity storage capacity appears set to triple
in energy terms by 2030 if countries proceed to
double the share of renewables in the world’s energy
system. With the growing demand for electricity
storage from stationary and mobile applications, the
total stock of electricity storage capacities in terms of
energy will require to grow from 4.67TWh in 2017 to
around 15.72TWh (155-227% higher referring to
2017) if the RES share into the energy system is
going to be doubled by 2030. The future storage
capacity in (GWh) will be dominated by PHES. By
2030, pumped PHES capacity will increase by 1560
to 2340 GWh above 2017 levels in the REmap
Doubling case. The more rapid growth of other
sources of electricity storage will see its share fall to
45-51% by 2030 in the REmap Doubling case [15].
4 Methodology
4.1 Energy Storage Model Identification
The chosen methodologies of exploiting ESS using
computational tools for representing the
incorporation of ESS within the selected section
location of the power system to where it can be
connected, and the bulk generation, transmission, and
distribution, commercial and industry, and residential
users as it is given in figure 12. The current study
also addresses the commercial availability, benefits,
realistic requirements, barriers, and limitations of
these technologies in the important two sections
namely bulk generation, transmission, and
distribution under the current and future Albanian
energy system. This method allows the evaluation
various of ESSs concerning their applications,
characteristics, costs, and benefits within the power
system. The obtained results of the analysis were all
combined to verify the appropriateness of different
ESS and prioritize them for meeting the application
list given in table 4. It also enables determining the
best possible use and physical placement within the
grid. The best storage system is the one that fits the
application’s list, at the cheapest possible cost.
Fig. 11: Overview of ES-Select™ design and
functionalities [20].
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Comparing energy storage systems is complicated as
it is closely related to a wide variety of operational
and business factors such as differences in
deliverable power, efficiency, discharge time, life
cycle, the number of applications that the systems
can be applied to, financial parameters and the ability
to monetize multi-applications benefits. As shown in
figure 11, ES-Select™ is a very sophisticated, highly
interactive model that offers a means to conduct a
careful analysis of the many interrelated factors that
influence the overall feasibility scores given in the
graphical presentation and ranks them for the
selected application(s) list required (see table 4). The
model uses a Monte Carlo-based analysis to handle
uncertainties in cost, benefit, life cycle, efficiency,
discharge duration, and other influenced parameters.
4.2 Energy Storage System Location And
Priorities Chosen In The Study
The chosen methodologies of exploiting ESS using
computational tools for representing the
incorporation of ESS in the selected section location
of the power system where it can be connected to
bulk generation, transmission, and distribution,
commercial and industry, and residential users. This
method allows the evaluation of various ESS
regarding their applications, characteristics, costs,
and benefits within the power system. The obtained
results of the analysis were all combined to verify the
appropriateness of different ESS and prioritize them
for the electric power system suitable to the region.
Fig. 12. Five possible locations for ESS integration.
The central or bulk storage (>50MW) is selected
[20].
Figure 12 shows five possible locations for the
application of energy storage systems (ESS)
connected to the national energy system. The
selection of a location on the network is of particular
importance as it directly affects three critical factors
also evaluated by many studies in the field of energy
storage and storage such as:
a. Installation cost;
b. Availability/applicability of integration of
energy storage and storage systems and;
c. Expected storage capacity.
Based on features and the current situation of the
power system in the country, studies [16-20],
objectives highlighted in [21], the 6 main
applications’ priorities, and the importance that each
application can bring to Albanian power system were
carefully chosen and ranked as it is given in table 4.
Table 4. List of application’s services and priorities
selected for the proposed ESS.
Application list
App#1
Trans. Congestion Relief
App#2
Trans Upgrade Deferral at 10%
App#3
Energy Time Shift (Arbitrage)
App#4
Solar Energy Time Shift
App#5
Wind Energy Time Shift
App#6
Solar Energy Smoothing
As the 6 basic applications that will be performed by
ESS are selected in the model and updating the
techno-economic features of various Energy Storage
Technologies in the model, then the appropriate
forms and types of energy storage are carried out.
5 Simulation Results and Discussion
This scientific paper describes a high-level,
technology-neutral framework for assessing potential
benefits from and economic market potential for
energy storage used for electric-utility-related
applications in Albania. The overarching theme
addressed is the concept of combining
applications/benefits into attractive value
propositions that include the use of energy storage,
possibly including distributed and/or modular
systems. Other topics addressed include high-level
estimates of application-specific lifecycle benefit (10
years) in ($/kW) and maximum market potential (10
years) in MW. Combined, these criteria indicate the
economic potential (in $Millions) for a given energy
storage application/benefit. The combination of the
value of an individual benefit ($/kW) and the
corresponding maximum market potential (MW)
indicates the possible impact that storage could have
on the Albanian economy.
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Fig. 13: The result of the feasibility scores analysis
based on ($/kW).
The analysis of the feasibility scores for the selection
of the right form and type of ESS, meeting the
services listed in table 4, it results in 8 different types
of storage recommended as the most suitable by the
ES-Select model. The ESS that has the highest
feasibility scores result in the form of mechanical
storage, respectively PHES and CAES-c (compressed
air energy storage-cavern). Energy shifting is one of
the issues always supported by the application of
PHES and CAES conservation schemes. Currently,
on a global scale, mechanical storage systems such as
PHES and CAES serve as systems to store excess
energy (overproduction), especially from renewable
energy sources (RES) or energy delivered from
generators at off-peak demand and low-cost intervals.
Other storage alternatives carried out to support
chosen application’s list can be Na-S batteries, Li-Ion
batteries, etc. These batteries have a long-life cycle,
and high capacity and can be used in practical cases
when short or long discharge time is required.
Fig. 14: Result of the discharge duration analysis for
various ESS for the chosen application services.
From the results in the simulation (Figure 14), PHES
and CAES-c types can provide long discharge times
from 8 up to10 hours, while NaS batteries offer a
discharge duration of around (6÷7) hours while other
types offer discharge duration (1÷5) hours. The
longer the discharge duration the more flexible and
stable the power system can be. PHES and CAES-c
are usually used for applications with an installed
power capacity (10÷1000) MW and E/P ratio greater
than 5 (energy displacement) as well as (5÷100) MW
with E/P ratio varying from 3 up to 6 (load levelling).
The amount of energy stored from CAES-c and
PHES is limited only by the volume of the air and
water reservoir.
These technical characteristics make Na-S batteries
perfect for practical applications such as: responding
to frequency changes, and energy shifting from
renewable sources in time. However, Na-S batteries
require high temperature to operate efficiently hence
it can bring uncertainty and risk that’s why it is
excluded as a valuable option.
Fig. 15: Scores for commercial maturity for various
ESS meeting the application’s list.
In figure 15 the result of the simulation regarding
technology maturity is applied per the chosen
application given in table 4. The results rank first
PHES, Sodium Sulfur, and third CAES-c. More
evaluation of the selection process of appropriate
ESS is needed.
In figure 16 the results from simulation-based on
total installation cost for various ESS meeting the
application’s list (table 4) is given.
Fig. 16: The results from the simulation-based on
total installation cost for various ESS meeting the
application’s list.
The cost score for each storage option is inversely
proportional to the installed cost and is normalized
concerning the expected final target values of $X/kW
or $Y/kWh, depending upon whichever applies to an
application, where X and Y are the expected costs of
the ESS (eq.1 and 2 below):
𝑪𝑶𝑺𝑻 𝑺𝑪𝑶𝑹𝑬 = (𝐗/(𝐗 + 𝐈𝐍𝐒𝐓𝐀𝐋𝐋𝐄𝐃 𝐂𝐎𝐒𝐓 𝐈𝐍 $/𝐤𝐖))
(1)
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𝑪𝑶𝑺𝑻 𝑺𝑪𝑶𝑹𝑬 = (𝐘/(𝐘 + 𝐈𝐍𝐒𝐓𝐀𝐋𝐋𝐄𝐃 𝐂𝐎𝐒𝐓 𝐈𝐍 $/𝐤𝐖𝐡))
(2)
The results rank first Hybrid LA&DL-CAP and
second CAES-c.
6 Financial Analyses of ESS
The money available to the business serves as the
"raw material" that enables the business to function
smoothly just as it serves the fat ("material") that
makes a machine work smoothly and increases
longevity. By creating a cash flow budget, one can
design fund applications for future time periods,
which are needed for various maintenance services,
replacement of plant parts or the need to replace
aggregates at the end of the characteristic life cycle
for energy conservation systems (ESS).
So, it is necessary to identify each period of money
deficit in advance in such a way that the
designer/developer gives recommendations or
corrective actions today, to alleviate a possible deficit
tomorrow.
In the ES-Select model, cash flow (Cash Flow) and
payback period (Payback Period) are two interfaces
in the Benefit/Cost group that enable full financial
analysis for each storage option. The "Cash Flow"
interface shows the costs, benefits and net cash flow
accumulated by the selected ESS option during
operation. The estimated cost of "replacement or
renewal" for each storage option as well as the year
in which the renewal will be required have been
considered in the cash flow analysis. Annual costs
are the sum of the maintenance or warranty cost plus
the expected operating costs for each application
selected in our study (refer table 4).
The "simple payback period" analysis module
provides and compares the ROI (Return on
investment), for all possible storage options
calculated and ranked according to the total
feasibility points. The simple payback period (SPP)
of the investment can be given graphically or as a
statistical distribution generated by the ES-Select
model considering financial parameters in table 5.
Table 5. Financial parameters used for cash flow
analysis: Base case scenario.
Profit growth rate
2%
Discount rate
(5-11)%
Electricity price growth rate
2.5%
Purchasing Cost of electricity
(min)
$30/MWh
Purchasing Cost of electricity
(max)
$50/MWh
Investment period
20years
In conclusion, the cost-benefit analysis process for
the selected applications given in table 4
(App1App6) gives answers to two main problems:
1. To determine if the project is economically
feasible and;
2. compare a concrete investment with other
competing projects by defining the most
feasible storage option.
Considering the financial parameters presented in
Table 5, a cash flow analysis for each ESS is
performed and given in figure 17. The analysis of the
cash flow and the SPP is carried out considering the
project life of 20 years, the discount rate of 11%, the
growth rate profit of 2.5%, the rate of increase of the
electricity price 2.5%, and the purchasing energy
min/max range ($30÷50/MWh) is accepted.
Fig. 17: Cumulative benefits and costs for the case of
PHES type.
Figure 17 shows the result of the cash flow analysis
which ranked first the PHES. The related spare parts
costs are estimated to occur in the first year and in
the 17-th year having values of $(2200-2750)/kW and
less than $200/kW. While the PV (present value) of
cumulative annual losses and maintenance costs
increase progressively over the years ranging from
$50 in year 1 up to $2000/kW at the end year of the
system’s lifetime. The actual value of benefits varies
from $750 up to 6250/kW.
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Fig. 18: Cumulative net cash flow for the case of
PHES type.
Figure 18 shows the interval of the present value of
the net benefit during the lifespan of the PHES plant.
As it can be seen from the graph in figure 18, the
PHES option ranges both in negative and positive
regions, hence it requires a more detailed and
extended analysis including different influencing
factors.
Fig. 19: Cumulative benefits and costs for the case
of CAES-c type.
Figure 19 shows the result of the cash flow analysis
for the case of ESS of the CAES-c type. From the
simulation results, it is clearly shown that the costs
for spare parts are estimated to occur in the first year
and in the 17th year with respective values ranging
from $(1100-1900)/kW and less than $150/kW.
While the PV of cumulative annual losses and
maintenance costs increase progressively over the
years ranging from $50 in year 1 to $1250/kW at the
end year of the plant lifetime. The present value of
the benefit varies from $750-6250/kW. Compared to
PHES, CAES-c system has lower O&M costs.
Fig. 20: Cumulative net cash flow for the case of
CAES-c type.
The interval of net present value ($/kW) calculated
for 20 years of plant operation is given in Figure 20.
As can be seen from the graph in Figure 20, CAES-c
storage system provides positive revenue after the
second year of its operation. The behavior of the
system in respect of the initial techo-economimc
parameters will be given in detail calculated in the
section of risk analysis.
Fig. 21: Cumulative benefits and costs for the case of
Na-S type.
In the graph in figure 21 the case of ESS of Na-S
type is given. This system is represented with high
capital costs for new spare parts ranging on average
mids values $(3300-3800)/kW in the first year of its
operation.
Fig. 22: Cumulative net cash flow for the case of Na-
S type.
As depicted in the graph in Figure 22 the Na-S
battery storage system provides revenue after the 10-
th year of its operation where the actual value of the
net benefit is many folds lower, due to the high cost
of spare parts and system depreciation over the years.
Considering the total combined feasibility scores
gathered from Na-S for the application’s list given in
table 4 it is ranked third, hence it can’t be applied.
Compared to Na-S batteries, high-energy Li-Ion
batteries are characterized by high installation costs
(up to $4,000/kW) and associated costs for spare
parts. As a result, Li-Ion batteries are not feasible,
and it is excluded from our case study.
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7 Simple Payback Period Calculation
(SPP)
SPP is one of the methods for evaluating the
economic efficiency of different studies and various
engineering projects. This is the time required by an
investment where the total discounted costs of a
project are exceeded by the total discounted benefits.
In our analysis, the lifespan of each ESS plant is
considered 20 years. The ESS and technologies
which result in a longer payback period than the
manufacturer-recommended lifespan and literature
are excluded.
Fig. 23: Probability of having Payback (in years) of
different proposed ESS at a discount rate of (r)11%.
The graph in figure 23 gives the probability of
payback for each possible ESS that meet the
application’s list given in the table 4. In this graph it
is clearly seen that for the initial preconditions of the
financial parameters, referred to as the baseline
scenario, given in Table 5 it results that the storage
type of CAES-c and Hybrid batteries have a high
probability of having a payback period in in the first
5-6 years of plant operation. PHES plants and Na-S
batteries have a lower probability of reaching the
payback period as a result and both technologies are
excluded as a selection option for the case of our
study. Based on the technical analysis and "cash
flow" for each of the above systems, it results that:
the CAES-c system meets the conditions to perform
the list services of the national power system. Also,
the CAES-c storage system has a higher lifespan and
lower maintenance costs compared to Hybrid type
batteries, which reach a maximum lifespan of up to
10 years or equivalent cycles. Choosing a discount
rate of 5%, and considering other parameters
unchanged, it is shown that the CAES-c storage
system can have a payback within the first 3-4 years
of its operation.
From the graph in Figure 24, a specific weight factor
of 1 that calculates the total feasibility scores meeting
the application’s list, commercial maturity, location
requirement, and total installation cost ($/kW) at the
chosen location is accepted.
Fig. 24: Analysis of storage options sorted by total
feasibility scores meeting the application’s list,
commercial maturity, location requirement, and total
installation cost at the chosen location.
As it can be seen from the results of the analysis, the
PHES storage system ranks first with 71% followed
by the CAES-c with 70% and Na-S batteries at 66%.
The other types are battery types having the same
level of total feasibility points with (35-43)%. This
assessment does not consider the physical aspect
related to the real installation availability, which
needs the designer to analyze step by step
considering first the country context, associated
costs, and other limiting factors in the site.
8 Conclusions
In Albania, the use of energy storage systems (ESS)
systems has been limited due to the lack of research
initiatives and cooperation between key actors in the
energy sector in the country. The distinctive and
profoundly important feature of energy storage
systems (ESS) is to provide multiple benefits from a
single device. The use of ESS, with the aim to solve
multiple services in the transmission sector will be a
key strategy to foster the upcoming RES capacities in
Albania.
The high level of seasonal losses of potential energy
in the Hydropower Power Plants (HPP) and the
problems of congestion in transmission grid are the
two main problems that require new methods for
addressing and solving them. The purpose of this
study was fully met by conducting a comparative
technical and economic analysis of different types of
energy storage systems at the central or bulk
generation. The study confirms the status,
capabilities and restrictions, costs, and benefits of the
main storage technologies available: PHES, CAES,
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Ilirian Konomi, Valma Prifti, Andrin Kërpaçi
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Volume 17, 2022
various batteries (NaS, Li-Ions, ZEBRA, etc.). The
economic analysis focused on estimating the cost of
installation, the payback period (SPP), profitability
over a 10-year period, NPV as well as a detailed
sensitivity analysis. Therefore, in the absence of the
above-mentioned features, it is extremely difficult to
tackle the challenges of the energy sector alone on
the road to 2030 or 2050. PHES and Compressed air
energy storage (CAES) is suitable for large-scale
energy storage and can help to increase the
penetration of intermittent sources such as wind and
solar power into the Albanian power systems.
9 Recommendations
Risk assessment and acceptance should be
considered for a project that has a significant cost,
hence analyzing which factors create the greatest risk
carefully and accurately and redesigning the actual
energy strategy is needed. Deferral of investments in
the transmission network involves partial or total
diversions in investments for the renovation of the
transmission system, using relatively small amounts
of storage. To defer a possible upgrade within a
period, the generating capacity of the (ESS) must be
equal to the expected load increase during the
following period. In these conditions, the presence of
ESS in the transmission network could avoid
unnecessary investment.
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DOI: 10.37394/232016.2022.17.16
Ilirian Konomi, Valma Prifti, Andrin Kërpaçi
E-ISSN: 2224-350X
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Volume 17, 2022
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
-Ilirian KONOMI: Conceptualization of the
publishedwork, formulation, and evolution of
overarching research goals and aims. Data curation
and scrubbing data and maintaining research data
(including software code and validation.
Application of statistical, mathematical,
computational, and simulation in ES-select model.
-Valma PRIFTI: Formal analysis and Preparation,
creation, and presentation of the published work.
--Andrin KERPACI: Development or design of
methodology; creation of models, preparation,
creation, and presentation of the published work.
Application of statistical, mathematical,
computational, or other formal techniques to analyze
or synthesize study data.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
There are no sources of funding for this research
work.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en_
US
WSEAS TRANSACTIONS on POWER SYSTEMS
DOI: 10.37394/232016.2022.17.16
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