Techno-economics analysis of battery energy storage system (bess) design for virtual power plant (VPP)-A case study in Malaysia

Renewable Energy (RE) penetration to power system has been a trend in recent years. Malaysia under the new RE target has a vision to achieve 20% of RE in energy mix by 2025. Flexibility and stability of power system can be a concern due to high penetration of RE in the system. Battery Energy Storage System (BESS) has been identified as one of the possible solutions to mitigate this issue. This paper will discuss the capabilities of this technology to reduce peak demand charge and potential to solve power system issues and the techno-economic analysis for this technology. This covers technical and economic analysis to ensure viability and feasibility of this technology. This is a novel analysis in terms of Malaysian energy market as BESS is considered relatively new technology and still in early stage in terms of commercial deployment.

Automated summary

Malaysia aims to achieve a 20% share of renewable energy in its energy mix by 2025, but the high penetration of renewable energy may pose challenges to the flexibility and stability of the power system. Battery Energy Storage System (BESS) is identified as a possible solution to mitigate these issues, with this paper discussing its capabilities to reduce peak demand charges and address power system problems. This analysis covers technical and economic aspects to ensure the viability and feasibility of BESS technology in the Malaysian energy market.