Internal rate of return of energy storage equipment

Is the internal rate of return a profitability measure for battery storage systems?

Multiple requests from the same IP address are counted as one view. This paper assesses the profitability of battery storage systems (BSS) by focusing on the internal rate of return (IRR) as a profitability measure which offers advantages over other frequently used measures, most notably the net present value (NPV).

Does internal rate of return matter in battery storage systems?

Author to whom correspondence should be addressed. This paper assesses the profitability of battery storage systems (BSS) by focusing on the internal rate of return (IRR) as a profitability measure which offers advantages over other frequently used measures, most notably the net present value (NPV).

What is internal rate of return (IRR)?

Internal Rate of Return (IRR) This paper is based on the IRR as a key economic metric for assessing the profitability of investment projects.

How does energy flow conversion differ from other energy storage systems?

Compared with other energy storage systems, the energy flow conversion of this type of system is highly dependent on the boundary conditions of its application scenarios, economic inputs and returns, as well as flexible and rational operational strategies.

What is a typical distributed energy storage system for research?

Lead-carbon battery, sodium-sulfur battery, lithium iron battery and vanadium redox battery are selected as typical distributed energy storage system for research. The specific costs and technical performance parameters are shown in Table 1. TABLE 1.

What is economic benefit evaluation for energy storage?

The economic benefit evaluation for energy storage is an important part to investigate the feasibility of the project, which offers an essential basis for the scientific decision-making in the early stage of project implementation and provides the technical support for distributed energy storage system project investment.