Analysis of the profitability of energy storage in industry

Motivated by the so called energy transition in Germany and the increasing volatility in energy markets because of the usage of renewable energy sources like sun and wind, this paper analyzes the economic feasibility of selected energy storage technologies. First, battery, pressurized air and thermal energy storage systems are outlined. Subsequently, in order to evaluate the economic feasibility, economic and technical factors are explained. Furthermore, different applications of energy storage systems – electricity balancing market, variable energy prices and demand rates – are analyzed. This theoretical framework is used for the case of the Zollner Elektronik AG, for which an investment decision for an energy storage system is discussed. For this case, the application of the energy storage system with the most economic potential is defined, which is the basis for the dimensioning and the evaluation of cost and revenue for the energy storage system. Finally, this analysis leads to the conclusion whether the storage system is economically beneficial.