Battery Storage System Cost-Benefit Analysis

A Battery Storage System Cost-Benefit Analysis (BSS CBA) is a systematic evaluation comparing the total expected costs of deploying and operating a battery energy storage system against its anticipated benefits, encompassing financial, operational, and environmental factors. In engineering, it quantifies the technical performance and lifespan against capital expenditure and maintenance. Financially, it assesses the return on investment (ROI), payback period, and net present value (NPV) considering revenue streams like arbitrage, frequency regulation, and capacity markets. Academically, it provides a framework for optimizing system design and policy decisions by quantifying the broader societal and grid-level impacts.