Battery storage implementation in Sweden and sizing software development

Sammanfattning: Due to the rampant growth of the penetration of renewables into the electrical grids across the world, more challenges appear in the way to assure the optimal operation of the energy system. More particularly, in the case of Sweden, the nuclear power decommissioning tendency and the 100% renewable energy target by 2040, set two strong additional motivations for the rise of issues regarding variability, uncertainty, stability, balancing and quality in the grid. Because of this, the objectives of this degree project were to generate a strategy to implement BESS in the Swedish market and develop a digital tool to perform grid-scale BESS sizing. To achieve these objectives, a robust review of the services provided by BESS, the different types of BESS, the Swedish electrical grid, the Nordic energy market and the legislation involving BESS was conducted to establish a rigid conceptual framework to develop the research. Afterwards, the project was divided in two parts, the first one dedicated to creating a business model based on information collected from market research and the second one dedicated to developing the digital tool. From the first part, it was found that the grid-scale BESS market size in Sweden is 779M SEK and that Li-ion batteries are by far the one and only option currently used in the market. Additionally, it was found that frequency regulation is the most consumed service from BESS, accompanied by arbitrage and peak shaving, and that the average CAPEX for BESS projects lies between 4.4M SEK-5.5M SEK/MW. Finally, a business model involving BESS sales was proposed and a SWOT analysis was performed to identify possible opportunities and threats for the future development of the project. In the second part, it was possible to create the digital tool using the information collected from the market research and assumptions made along the process. The tool can be used to size BESS meant to provide frequency regulation, arbitrage, and peak shaving in Sweden, resulting in a visualization of the operation of the battery and an overview of the financial forecast of the project. As a conclusion, there are multiple growth opportunities for the BESS market in Sweden and, due to the early development stage of the market, there is broad space for innovation and creativity, attributes that can be regarded as opportunities in an ever-competitive market as the energy market is. Further improvements are proposed for the digital tool to make it stronger, more reliable, and more accurate in order to deliver enhanced results more proximate to real experience.