Energy storage planning and risk management

• Main Author: Xiao, Jiaxi
• Other Authors: Dong Zhao Yang
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2024
• Subjects: Engineering; Energy storage; Energy storage planning; Risk management
• Online Access: https://hdl.handle.net/10356/176748
• Institution: Nanyang Technological University

Energy Storage Systems plays a crucial role in integrating renewable energy sources into our grid. The deployment of Energy Storage Systems depends on the financial benefits, thus there is a need to conduct an economic viability assessment regarding energy storage adoption in Singapore, particularly to advise new market entrants. This project collected data on Energy Storage Systems and photovoltaic costs. Utilizing time series forecasting models and probability distribution trend analysis, future Uniform Singapore Electricity Prices, as well as potential future costs and revenue from 2024 to 2033, were estimated and an optimal revenue portfolio was developed. Employing the COSO Enterprise Risk Management model, the impact of various risks including legal, fire, interest rate, inflation, war, rivalry, demand fluctuations and price factors on revenue was assessed. By conducting risk management analysis, it considers external factors and improves predictions of future Internal Rate of Return. Multiple possible future scenarios including normal, optimistic, pessimistic, fire and war were formulated and the Internal Rate of Return for each scenario was calculated. The project also identifies the most effective strategies for an Energy Storage Systems project to achieve the optimal Internal Rate of Return. An Excel tool has also been developed to provide investors an overview of their anticipated Internal Rate of Return based on parameters such as Energy Storage Systems size, photovoltaic size and debt ratio.