Scotty we need More power!!!!!! Crazy to think you need to use 220V to simulate a Lipo Battery.

Personally I prefer using the Lipo as the power source since that is what we use on track, voltage droop and all. When I create a model in RC3 I include the effect of battery internal resistance, wiring and ESC on resistance when creating the model. That way once the model is created I can just change the battery Internal resistance to zero and see the effect. The attached graphs provide a comparison between a typical Lipo pack with a total internal resistance of 20mOhm to an ideal voltage source with zero internal resistance hence zero voltage droop. Static voltage for both is 8V. The performance difference is huge in the lower RPM range and becomes progressively less as the motor current drops.

The thing that would concern me with the power supply is the initial current draw. It will be significantly higher than with a Lipo so it will certainly put more stress on the ESC. As you can see in this example of a 13.5T motor the initial draw goes from 150 to 250 amps. While it will be a short duration I would be cautious so you don't let the magic smoke out.