A master programme thesis from Aalborg University
BESS in Denmark: An evaluation of business-economic viability and organisational framework
Term
4. Term
Publication year
2025
Submitted on
2025-05-27
Pages
140 pages
Abstract
This thesis investigates the financial viability and organisational framework of stand-alone Battery Energy Storage Systems (BESS) in Denmark. It is guided by the research question: "How do BESS's current and future business economic prospects affect its financial viability in Denmark, and how could relevant stakeholders address the challenges and opportunities related to BESS planning, regulation, and deployment?" The thesis combines qualitative and quantitative methods, including stakeholder analysis, interviews, and techno-economic modelling of a 10 MW / 20 MWh stand-alone BESS participating in the frequency containment reserve and intraday market, in DK1 for 2024. The modelling results show that BESS can be financially viable, but the return is modest and sensitive to changes in market saturation, conditions, and investment costs. Multi-market participation is essential for achieving economic viability. The analysis also finds that local planning and authorisation processes are characterised by regulatory uncertainty and a lack of national guidance. This creates uneven conditions across municipalities and contributes to an uncertain investment environment. In conclusion, the thesis highlights both the challenges and opportunities facing BESS in Denmark. It presents insights into BESS's financial viability and organisational structure under current conditions for decision makers. It recommends providing more explicit national guidance for local planning and that BESS's future role be holistically assessed from a smart energy system perspective.
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