IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v111y2013icp1126-1135.html
   My bibliography  Save this article

The dimensioning of PV-battery systems depending on the incentive and selling price conditions

Author

Listed:
  • Mulder, Grietus
  • Six, Daan
  • Claessens, Bert
  • Broes, Thijs
  • Omar, Noshin
  • Mierlo, Joeri Van

Abstract

Electric energy storage is probably the first viable for households since they pay the highest electricity tariffs, being a factor four higher than bulk electricity prices. The attractiveness depends on the subsidy systems (if existing), the electricity price and the purchase cost of a PV installation and a battery system. Since the electricity price may not remain constant during the lifetime of the storage system, a financial cash flow calculation is needed including discount rate and inflation. In this research the optimal PV-battery system is determined as a function of the remuneration (discerning a subsidised region, a “market” price region and no fees at all), the investment year (2012, 2017 and 2021) and the electricity price increase rate (0%, 4%, 6%) (including the general inflation rate). The analysis is based on available battery energy storage systems on the market and on real household measurement data. All these degrees of freedom secure the accuracy of the analysis. The article shows also the battery throughput cost with a direct comparison to the electricity cost.

Suggested Citation

  • Mulder, Grietus & Six, Daan & Claessens, Bert & Broes, Thijs & Omar, Noshin & Mierlo, Joeri Van, 2013. "The dimensioning of PV-battery systems depending on the incentive and selling price conditions," Applied Energy, Elsevier, vol. 111(C), pages 1126-1135.
    • Handle: RePEc:eee:appene:v:111:y:2013:i:c:p:1126-1135
    DOI: 10.1016/j.apenergy.2013.03.059
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261913002559
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2013.03.059?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Denholm, Paul & Margolis, Robert M., 2007. "Evaluating the limits of solar photovoltaics (PV) in electric power systems utilizing energy storage and other enabling technologies," Energy Policy, Elsevier, vol. 35(9), pages 4424-4433, September.
    2. Strzalka, Aneta & Alam, Nazmul & Duminil, Eric & Coors, Volker & Eicker, Ursula, 2012. "Large scale integration of photovoltaics in cities," Applied Energy, Elsevier, vol. 93(C), pages 413-421.
    3. Gelabert, Liliana & Labandeira, Xavier & Linares, Pedro, 2011. "An ex-post analysis of the effect of renewables and cogeneration on Spanish electricity prices," Energy Economics, Elsevier, vol. 33(S1), pages 59-65.
    4. Ekren, Orhan & Ekren, Banu Y., 2010. "Size optimization of a PV/wind hybrid energy conversion system with battery storage using simulated annealing," Applied Energy, Elsevier, vol. 87(2), pages 592-598, February.
    5. Ho, W.S. & Hashim, H. & Hassim, M.H. & Muis, Z.A. & Shamsuddin, N.L.M., 2012. "Design of distributed energy system through Electric System Cascade Analysis (ESCA)," Applied Energy, Elsevier, vol. 99(C), pages 309-315.
    6. Ekren, Orhan & Ekren, Banu Y. & Ozerdem, Baris, 2009. "Break-even analysis and size optimization of a PV/wind hybrid energy conversion system with battery storage - A case study," Applied Energy, Elsevier, vol. 86(7-8), pages 1043-1054, July.
    7. Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2008. "The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Energy Policy, Elsevier, vol. 36(8), pages 3076-3084, August.
    8. Clastres, C. & Ha Pham, T.T. & Wurtz, F. & Bacha, S., 2010. "Ancillary services and optimal household energy management with photovoltaic production," Energy, Elsevier, vol. 35(1), pages 55-64.
    9. Herter, Karen & Wayland, Seth, 2010. "Residential response to critical-peak pricing of electricity: California evidence," Energy, Elsevier, vol. 35(4), pages 1561-1567.
    10. Nemet, Gregory F., 2006. "Beyond the learning curve: factors influencing cost reductions in photovoltaics," Energy Policy, Elsevier, vol. 34(17), pages 3218-3232, November.
    11. Elma, Onur & Selamogullari, Ugur Savas, 2012. "A comparative sizing analysis of a renewable energy supplied stand-alone house considering both demand side and source side dynamics," Applied Energy, Elsevier, vol. 96(C), pages 400-408.
    12. Denholm, Paul & Margolis, Robert M., 2007. "Evaluating the limits of solar photovoltaics (PV) in traditional electric power systems," Energy Policy, Elsevier, vol. 35(5), pages 2852-2861, May.
    13. Dufo-López, Rodolfo & Zubi, Ghassan & Fracastoro, Gian Vincenzo, 2012. "Tecno-economic assessment of an off-grid PV-powered community kitchen for developing regions," Applied Energy, Elsevier, vol. 91(1), pages 255-262.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hoppmann, Joern & Volland, Jonas & Schmidt, Tobias S. & Hoffmann, Volker H., 2014. "The economic viability of battery storage for residential solar photovoltaic systems – A review and a simulation model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 1101-1118.
    2. Ren, Zhengen & Grozev, George & Higgins, Andrew, 2016. "Modelling impact of PV battery systems on energy consumption and bill savings of Australian houses under alternative tariff structures," Renewable Energy, Elsevier, vol. 89(C), pages 317-330.
    3. Breyer, Christian & Birkner, Christian & Meiss, Jan & Goldschmidt, Jan Christoph & Riede, Moritz, 2013. "A top-down analysis: Determining photovoltaics R&D investments from patent analysis and R&D headcount," Energy Policy, Elsevier, vol. 62(C), pages 1570-1580.
    4. Hernández-Moro, J. & Martínez-Duart, J.M., 2013. "Analytical model for solar PV and CSP electricity costs: Present LCOE values and their future evolution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 119-132.
    5. Azofra, D. & Saenz-Díez, J.C. & Martínez, E. & Jiménez, E. & Blanco, J., 2016. "Ex-post economic analysis of photovoltaic power in the Spanish grid: Alternative scenarios," Renewable Energy, Elsevier, vol. 95(C), pages 98-108.
    6. Dufo-López, Rodolfo & Lujano-Rojas, Juan M. & Bernal-Agustín, José L., 2014. "Comparison of different lead–acid battery lifetime prediction models for use in simulation of stand-alone photovoltaic systems," Applied Energy, Elsevier, vol. 115(C), pages 242-253.
    7. Newbery, David, 2018. "Evaluating the case for supporting renewable electricity," Energy Policy, Elsevier, vol. 120(C), pages 684-696.
    8. Moreno, Fermín & Martínez-Val, José M., 2011. "Collateral effects of renewable energies deployment in Spain: Impact on thermal power plants performance and management," Energy Policy, Elsevier, vol. 39(10), pages 6561-6574, October.
    9. Aldo Orioli & Vincenzo Franzitta & Alessandra Di Gangi & Ferdinando Foresta, 2016. "The Recent Change in the Italian Policies for Photovoltaics: Effects on the Energy Demand Coverage of Grid-Connected PV Systems Installed in Urban Contexts," Energies, MDPI, vol. 9(11), pages 1-31, November.
    10. Sabo, Mahmoud Lurwan & Mariun, Norman & Hizam, Hashim & Mohd Radzi, Mohd Amran & Zakaria, Azmi, 2017. "Spatial matching of large-scale grid-connected photovoltaic power generation with utility demand in Peninsular Malaysia," Applied Energy, Elsevier, vol. 191(C), pages 663-688.
    11. Csereklyei, Zsuzsanna & Qu, Songze & Ancev, Tihomir, 2019. "The effect of wind and solar power generation on wholesale electricity prices in Australia," Energy Policy, Elsevier, vol. 131(C), pages 358-369.
    12. Würzburg, Klaas & Labandeira, Xavier & Linares, Pedro, 2013. "Renewable generation and electricity prices: Taking stock and new evidence for Germany and Austria," Energy Economics, Elsevier, vol. 40(S1), pages 159-171.
    13. Ciarreta, Aitor & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2017. "Has renewable energy induced competitive behavior in the Spanish electricity market?," Energy Policy, Elsevier, vol. 104(C), pages 171-182.
    14. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    15. Browne, Oliver & Poletti, Stephen & Young, David, 2015. "How does market power affect the impact of large scale wind investment in 'energy only' wholesale electricity markets?," Energy Policy, Elsevier, vol. 87(C), pages 17-27.
    16. Figueiredo, Nuno Carvalho & Silva, Patrícia Pereira da & Cerqueira, Pedro A., 2016. "It is windy in Denmark: Does market integration suffer?," Energy, Elsevier, vol. 115(P2), pages 1385-1399.
    17. Solomon, A.A. & Faiman, D. & Meron, G., 2012. "Appropriate storage for high-penetration grid-connected photovoltaic plants," Energy Policy, Elsevier, vol. 40(C), pages 335-344.
    18. Claudio Marcantonini & A.Denny Ellerman, 2015. "The Implicit Carbon Price of Renewable Energy Incentives in Germany," The Energy Journal, , vol. 36(4), pages 205-240, October.
    19. Cludius, Johanna & Forrest, Sam & MacGill, Iain, 2014. "Distributional effects of the Australian Renewable Energy Target (RET) through wholesale and retail electricity price impacts," Energy Policy, Elsevier, vol. 71(C), pages 40-51.
    20. Gugler, Klaus & Haxhimusa, Adhurim, 2019. "Market integration and technology mix: Evidence from the German and French electricity markets," Energy Policy, Elsevier, vol. 126(C), pages 30-46.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:111:y:2013:i:c:p:1126-1135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.