A Jiangsu-based manufacturer of pesticide raw materials and fine chemical products, under the strategic context of promoting green manufacturing and cost reduction and efficiency enhancement, and considering the stable power supply required in the chemical production process, as well as the significant peak-valley electricity price difference in Jiangsu, plans to configure a 6-hour or 8-hour all-vanadium redox flow battery energy storage system. To reduce the initial investment pressure, the company innovatively adopts a vanadium electrolyte leasing model, transforming electrolyte from a fixed asset investment into an operating lease cost. The project uses the ZH Energy NeLCOS® Energy Storage Calculator to accurately and conveniently analyze the technical suitability of the project.

The customer's electricity type is "two-part industrial and commercial electricity," with a voltage level of 10kV：

According to the electricity prices for November 2024 in Jiangsu Province, the peak-valley electricity price difference is 0.861 yuan per kWh, and the peak-valley price difference in July, August, and December is 1.088 yuan per kWh, indicating a significant arbitrage opportunity. The time-of-use electricity prices are shown in the figure below:

From the electricity consumption analysis, the peak period consists of 8 hours, divided into two time slots: 3 hours in the morning and 5 hours in the afternoon. There is an 8-hour flat period between the two peak periods, and an 8-hour valley period in the early morning. Given that the DC efficiency of the energy storage system is 82%, it is advisable to fully utilize the 8-hour valley period in the early morning for charging. The discharge time is 8 × 82% = 6.6 hours, so a 6-hour energy storage system can be selected. Based on the above analysis, a 6.3MW/37.8MWh energy storage system should be chosen for this project. However, according to the customer's requirements, an 8-hour discharge system will also be calculated, that is, a 6.3MW/50.4MWh energy storage system.

The investment structure is 20% funded by the owner, with the remaining 80% financed through a loan. The loan is repaid in equal installments over 20 years at an annual interest rate of 4.0%. In terms of profit distribution, the owner's share is calculated at 10%. In cost accounting, the design and civil construction costs are calculated at 20% of the equipment cost. The value-added tax rate for equipment is 13%, and for civil construction, it is 9%. The income tax rate is 25%. The annual operation and maintenance costs are calculated at 1% of the equipment cost, and the shutdown maintenance rate is calculated at 7%. If the electrolyte is leased, the annual lease cost for the electrolyte is calculated at 8% of the total electrolyte cost (including tax), with the electrolyte cost calculated at 20,000 yuan per cubic meter. If the electrolyte is purchased, after the 20-year life of the all-vanadium redox flow battery system, the recovery rate of the electrolyte can reach 70%, and the recovered funds will be included in the revenue of the last year.

Based on the above operational analysis, the economic data of the project is obtained through the ZH Energy NeLCOS® Energy Storage Calculator:

The NeLCOS® Energy Storage Calculator independently developed and operated by ZH Energy can accurately calculate the investment return rate of energy storage systems for customers and investors from the perspectives of the full-life cost per kWh, annual return on investment, and energy storage configuration solutions. The calculator is available for free use by visiting the ZH Energy official website (www.z-henergy.com) or scanning the QR code.（https://nelcos.z-henergy.com/）

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