Economic benefit evaluation and incentive strategy research on Wind energy and BESS jointly participating in peak shaving auxiliary service market

The battery energy storage station (BESS) is developing from the demonstration project to the stage of business promotion. Due to the unsound Economic benefit evaluation, which restricts the large-scale promotion and construction of BESS. This paper establishes the life cycle cost and income model of BESS and uses the dynamic investment payback period, net present value (NPV), internal rate of return (IRR) and other economic indicators to analyze the economy of offshore wind power with BESS in peak shaving auxiliary service market. At the same time, aiming at stimulating the enthusiasm of the wind farm to allocate energy storage, we studied the improvement of the market regulation rules and government subsidies. The research results can provide an engineering economic reference for the investment decision of BESS and the government to guide the development of energy storage.