# Assessing the Economics of Customer-Sited Multi-Use Energy Storage

## TL;DR

This paper develops a method to evaluate the economic viability of customer-owned multi-use energy storage systems that participate in grid markets and optimize renewable energy use, using a rolling-horizon approach.

## Contribution

It introduces a novel economic assessment framework for multi-use energy storage systems with case studies demonstrating profitability insights.

## Key findings

- Customer-sited ESSs can be profitable when participating in multiple markets.
- The rolling-horizon optimization improves service scheduling and economic outcomes.
- Case studies reveal conditions under which ESSs are economically viable.

## Abstract

This paper presents an approach to assess the economics of customer-sited energy storage systems (ESSs) which are owned and operated by a customer. The ESSs can participate in frequency regulation and spinning reserve markets, and are used to help the customer consume available renewable energy and reduce electricity bill. A rolling-horizon approach is developed to optimize the service schedule, and the resulting costs and revenues are used to assess economics of the ESSs. The economic assessment approach is illustrated with case studies, from which we obtain some new observations on profitability of the customer- sited multi-use ESSs.