Calculation of the cost of electricity in the conditions of high penetration of solar energy and the use of storage systems in Iran's power network

Ebrahimi Zaker, Shayesteh; Javanfekr, Amir Hossein; Adel Barkhordar, Zahra Sadat

doi:10.22034/jrenew.2025.226265

Calculation of the cost of electricity in the conditions of high penetration of solar energy and the use of storage systems in Iran's power network

Document Type : Original Article

Authors

Shayesteh Ebrahimi Zaker ¹

Amir Hossein Javanfekr ¹

Zahra Sadat Adel Barkhordar ²

¹ Faculty of Mechanical and Energy Engineering, Shahid Beheshti University, Tehran, Iran

² Faculty of Mechanical and Energy engineering, Shahid Beheshti University, Tehran, Iran.

https://doi.org/10.22034/jrenew.2025.226265

Abstract

Much of the focus in renewable energy capacity building centers on variable renewable energy sources such as solar and wind. In Iran, long-term plans for harnessing solar energy persist despite its inherent variability. The utilization of these renewables incurs both direct and indirect costs for the power network. Variable renewable energies necessitate compensation for their intermittency through flexible power plants and storage systems This would further elevate the cost of electricity that is sold to consumers. This study explores the financial implications of solar energy integration and the requisite storage systems as a result of solar energy penetration. Since investigating a variables effect requires to keep others constant, it has been assumed that the utilization factor of flexible production power plants remains constant. Four storage systems are scrutinized: pumped hydro storage, batteries, hydrogen production alongside fuel cells, and hydrogen-gas combination in a gas turbine. The results indicate that the levelized cost of electricity in the four scenarios are $0.3, $0.09, $1.42, and $0.89 per kilowatt-hour, respectively. These values suggest that pumped-storage power plants, followed by grid-scale batteries, can provide energy storage at the lowest cost.

Keywords

Variable renewable energy

Battery

Energy storage

Hydrogen

Pumped-Hydro storage

Subjects

Solar Energy

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