A Microgrid Analysis of the Princeton University System: Flow Battery Purchase Incentives

Abstract

The increase in worldwide renewable energy use has created a need for improved energy storage. Since renewable sources, particularly wind and solar, produce varied amounts of energy through a day, storage systems help to even out supply and demand. Batteries are of particular importance because of their use on various scales and their fast response time that make them a versatile storage resource.This paper evaluates Princeton University’s proposal to install a Zn-Fe redox flow battery for use in conjunction with its solar fields to reduce campus emissions. The battery would be used to participate in grid services including demand response and frequency regulation and would also provide environmental benefits such as emissions reduction. This paper examines the economic and environmental incentives that such an installation would provide by optimizing the potential revenues of the battery, determining the project’s valuation, and examining its environmental impact. This paper concludes that the benefit of the battery purchase is primarily economic. Though participation in economic services also has a positive environmental effect, the impact on campus emission reduction is secondary and not quantifiable on a campus level. The project is still a smart investment for the University, however, because it provides flexibility to take advantage of future opportunities to reduce emissions.