Utilizing batteries in the Norwegian distribution grid

Abstract

Recent research indicates that photovoltaic (PV) induced overvoltage can occur in high PVpenetration low voltage distribution networks, due to reverse power flow from power injected to the grid. Since January 2020, the number of PV installations in Norway has seen a 2.7-fold increase in a rising trend. Simultaneously there have been several reports of grid-overvoltage and PV curtailment in the relation of grid-connected PV systems. This study aims to investigate the effects of batteries on peak injected power to the grid in Norwegian conditions. Further, an economic evaluation is done for different battery usage scenarios, including PV power self-consumption, peak shaving for reduced grid fee cost and arbitrage trading. Finally, the study investigates what regulation measures that must be in place, to make PV battery energy storage systems more profitable than PV-only systems. The study confirms that batteries can be used to reduce overvoltage, also in Norwegian conditions. Additionally, the findings indicates that for all scenarios investigated, batteries can only be considered profitable using electricity prices from 2022 averaging at 3.88 NOK/kWh, including taxes, in the NO1 price area. Conclusively, battery subsidies of 2666 NOK/kWh capped at 47500 NOK in combination with a fixed feed-in tariff of 30% is suggested, and the findings shows that for most scenarios, such a change in legislation would make batteries a more favourable investment than PV, if a PV-system already is installed.