Economic feasibility of thermal energy storage systems

This paper investigates the economic feasibility of both building an ice thermal storage and structure a time of rate tariff for the unique air conditioning (A/C) plant of the Grand Holy Mosque of Makkah, Saudi Arabia. The features of the building are unique where the air-conditioned 39,300 m2 zone is open to the atmosphere and the worshippers fully occupy the building five times a day, in addition hundreds of thousands of worshippers attend the blessed weekend's prayer at noontime, which escalates the peak electricity load.For economic analysis, the objective function is the daily electricity bill that includes the operation cost and the capital investment of the ice storage system. The operation cost is function of the energy imported for operating the plant in which the tariff structure, number of operating hours and the ambient temperature are parameters. The capital recovery factor is calculated for 10% interest rate and payback period of 10 years. Full and partial load storage scenarios are considered.The results showed that with the current fixed electricity rate (0.07 $/kWh), there is no gain in introducing ice storage systems for both storage schemes. Combining energy storage and an incentive time structured rate showed reasonable daily bill savings. For base tariff of 0.07 $/kWh during daytime operation and 0.016 $/kWh for off-peak period, savings were achieved for full load storage scenario.Different tariff structure is discussed and the break-even nighttime rate was determined (varies between 0.008 and 0.03 $/kWh). Partial load storage scenario showed to be unattractive where the savings for the base structured tariff was insignificant.