Evaluation of independent energy storage stations: A case study of the western Inner Mongolia region in China

Abstract

This study presents an economic evaluation of independent energy storage stations (IEES) in the Western Inner Mongolia power market. The study evaluates the profitability and investment return period of a hypothetical 100 MW/200 MWh energy storage station under the current spot market conditions. The results indicate that the IESS achieves an annual operating time of 668 hours, with a potential arbitrage income of 15.39 million CNY, leading to a static investment payback period of 10.81 years. The findings underscore the necessity for improved cost recovery mechanisms, such as capacity compensation, to make energy storage investments more viable in the face of current market constraints.