HANDBOOKONBATTERYENERGYSTORAGESYSTEMDECEMBER2018ASIANDEVELOPMENTBANKASIANDEVELOPMENTBANKASIANDEVELOPMENTBANKHANDBOOKONBATTERYENERGYSTORAGESYSTEMDECEMBER2018CreativeCommonsAttribution3.0IGOlicense(CCBY3.0IGO)©2018AsianDevelopmentBank6ADBAvenue,MandaluyongCity,1550MetroManila,PhilippinesTel+6326324444;Fax+6326362444www.adb.orgSomerightsreserved.Publishedin2018.ISBN978-92-9261-470-6(print),978-92-9261-471-3(electronic)PublicationStockNo.TCS189791-2DOI:http://dx.doi.org/10.22617/TCS189791-2TheviewsexpressedinthispublicationarethoseoftheauthorsanddonotnecessarilyreflecttheviewsandpoliciesoftheAsianDevelopmentBank(ADB)oritsBoardofGovernorsorthegovernmentstheyrepresent.ADBdoesnotguaranteetheaccuracyofthedataincludedinthispublicationandacceptsnoresponsibilityforanyconsequenceoftheiruse.ThementionofspecificcompaniesorproductsofmanufacturersdoesnotimplythattheyareendorsedorrecommendedbyADBinpreferencetoothersofasimilarnaturethatarenotmentioned.Bymakinganydesignationoforreferencetoaparticularterritoryorgeographicarea,orbyusingtheterm“country”inthisdocument,ADBdoesnotintendtomakeanyjudgmentsastothelegalorotherstatusofanyterritoryorarea.ThisworkisavailableundertheCreativeCommonsAttribution3.0IGOlicense(CCBY3.0IGO)https://creativecommons.org/licenses/by/3.0/igo/.Byusingthecontentofthispublication,youagreetobeboundbythetermsofthislicense.Forattribution,translations,adaptations,andpermissions,pleasereadtheprovisionsandtermsofuseathttps://www.adb.org/terms-use#openaccess.ThisCClicensedoesnotapplytonon-ADBcopyrightmaterialsinthispublication.Ifthematerialisattributedtoanothersource,pleasecontactthecopyrightownerorpublisherofthatsourceforpermissiontoreproduceit.ADBcannotbeheldliableforanyclaimsthatariseasaresultofyouruseofthematerial.Pleasecontactpubsmarketing@adb.orgifyouhavequestionsorcommentswithrespecttocontent,orifyouwishtoobtaincopyrightpermissionforyourintendedusethatdoesnotfallwithintheseterms,orforpermissiontousetheADBlogo.Notes:Inthispublication,“$”referstoUnitedStatesdollars.ADBrecognizes“Korea”astheRepublicofKorea.Onthecover:ADBSolarMiniGridPilotProjectinHarkapur,Okhaldhunga,Nepal(PhotobyC.LaoTorregosa);and,ADBsolar-windhybridprojectsiteinPiraKalwalandWadgalVillage,Joharabad,KhushabDistrict,Pakistan(PhotobyNasrurRahman)CorrigendatoADBpublicationsmaybefoundathttp://www.adb.org/publications/corrigenda.iiiTableandFiguresviForewordixAcknowledgmentsxAbbreviationsxiExecutiveSummaryxiii1EnergyStorageTechnologies11.1StorageTypes11.2ComponentsofaBatteryEnergyStorageSystem(BESS)71.2.1EnergyStorageSystemComponents71.2.2GridConnectionforUtility-ScaleBESSProjects91.3BatteryChemistryTypes91.3.1Lead–Acid(PbA)Battery91.3.2Nickel–Cadmium(Ni–Cd)Battery101.3.3Nickel–MetalHydride(Ni–MH)Battery111.3.4Lithium-Ion(Li-Ion)Battery111.3.5Sodium–Sulfur(Na–S)Battery131.3.6RedoxFlowBattery(RFB)132BusinessModelsforEnergyStorageServices152.1OwnershipModels152.1.1Third-PartyOwnership152.1.2OutrightPurchaseandFullOwnership162.1.3ElectricCooperativeApproachtoEnergyStorageProcurement162.2FactorsAffectingtheViabilityofBESSProjects172.3FinancialandEconomicAnalysis182.3.1CriteriafortheEconomicAnalysisofBESSProjects192.3.2KeyAssumptionsintheCost–BenefitAnalysisofBESSProjects193GridApplicationsofBatteryEnergyStorageSystems23CONTENTSivCONTENTS3.1ScopingofBESSUseCases233.2GeneralGridApplicationsofBESS243...