Energy storage in Madeira, Portugal: co-optimizing for arbitrage, self-sufficiency, peak shaving and energy backup
This paper presents a Techno-Economic assessment of the value proposition of introducing battery energy storage in the Madeira Island electric grid, where only micro-production for self-consumption is currently allowed. The evaluation was conducted against two local micro-producers using one year of energy consumption and solar PV production measurements. The assessments considered three different pairs of battery capacity/inverter size, and the outputs analyzed considering self-consumption, self-sufficiency, and energy costs. The results show that despite the increase in self-consumption and self-sufficiency, the value proposition of battery energy storage is still considerably low even considering a massive decrease in the costs of storage. Furthermore, the results also suggest that given the small size of the solar PV installations, inverters with half the size of the installed PV capacity represent the best value for money.