Levelized Cost of Storage Analysis with Multi-Objective optimization for BESS

This paper presents a multi-objective approach for the economic analysis of the life cycle of a Battery Energy Storage System (BESS). The approach utilizes the Levelized Cost of Storage (LCOS) methodology and takes into consideration investment and operating costs, storage capacity, efficiency, daily charge and discharge cycles, battery degradation, operational days within the BESS’s operational year, and various commercial participation schemes. Different multi-objective functions are established based on the desired sensitivity analysis for the multi-objective optimization problem.From this multi-objective problem, the Pareto Front, a 3D Plot of the Pareto Front, and a Parallel Coordinates Plot are obtained. These visualizations facilitate result analysis, sensitivity analysis, and decision-making for stakeholders such as investors, regulatory decisions, or energy policies. The proposed model is tested, and the Pareto frontier is used to comprehensively analyze results, considering the entire range of feasible solutions within the technical constraints imposed by the problem.”