IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v239y2019icp1343-1355.html
   My bibliography  Save this article

The nature of combining energy storage applications for residential battery technology

Author

Listed:
  • Parra, David
  • Patel, Martin K.

Abstract

Batteries are expected to play an important role in the transition to decarbonised energy systems by enabling the further penetration of renewable energy technologies while assuring grid stability. However, their hitherto high capital costs is a key barrier for their further deployment. In order to improve their economic viability, batteries could provide several applications offering revenues. The techno-economic evaluation of batteries simultaneously serving several applications has proven to be challenging due to the trade-offs between energy and power applications. Focusing on residential batteries, we develop an optimisation method for designing optimal value propositions and we test it for four different applications both individually and jointly: PV self-consumption, demand load-shifting, avoidance of PV curtailment and demand peak shaving. Our results show that the combination of all applications currently helps batteries to get closer to profitability, from a net present value (NPV) per unit of capital expenditure (CAPEX) of −0.63 ± 0.04 for PV self-consumption only to −0.36 ± 0.10, with the combination of demand peak-shaving and PV self-consumption adding most value (0.21 ± 0.04). We also find that the annual household’s electricity consumption determines the value of energy storage applications. The proposed method allow us to classify storage applications as complementary and substitutive depending on whether their combined application increases their economic attractiveness or not. These results thus offer valuable insight for stakeholders interested in the deployment of energy storage in combination with energy efficiency, heat pumps and electric vehicles such as consumers, utility companies and policy makers.

Suggested Citation

  • Parra, David & Patel, Martin K., 2019. "The nature of combining energy storage applications for residential battery technology," Applied Energy, Elsevier, vol. 239(C), pages 1343-1355.
    • Handle: RePEc:eee:appene:v:239:y:2019:i:c:p:1343-1355
    DOI: 10.1016/j.apenergy.2019.01.218
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261919302399
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2019.01.218?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. Schram, Wouter L. & Lampropoulos, Ioannis & van Sark, Wilfried G.J.H.M., 2018. "Photovoltaic systems coupled with batteries that are optimally sized for household self-consumption: Assessment of peak shaving potential," Applied Energy, Elsevier, vol. 223(C), pages 69-81.
    2. Parra, David & Norman, Stuart A. & Walker, Gavin S. & Gillott, Mark, 2017. "Optimum community energy storage for renewable energy and demand load management," Applied Energy, Elsevier, vol. 200(C), pages 358-369.
    3. Lombardi, P. & Schwabe, F., 2017. "Sharing economy as a new business model for energy storage systems," Applied Energy, Elsevier, vol. 188(C), pages 485-496.
    4. Parra, David & Norman, Stuart A. & Walker, Gavin S. & Gillott, Mark, 2016. "Optimum community energy storage system for demand load shifting," Applied Energy, Elsevier, vol. 174(C), pages 130-143.
    5. Luthander, Rasmus & Widén, Joakim & Nilsson, Daniel & Palm, Jenny, 2015. "Photovoltaic self-consumption in buildings: A review," Applied Energy, Elsevier, vol. 142(C), pages 80-94.
    6. 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.
    7. Sun, Peng & Nie, Pu-yan, 2015. "A comparative study of feed-in tariff and renewable portfolio standard policy in renewable energy industry," Renewable Energy, Elsevier, vol. 74(C), pages 255-262.
    8. Angenendt, Georg & Zurmühlen, Sebastian & Axelsen, Hendrik & Sauer, Dirk Uwe, 2018. "Comparison of different operation strategies for PV battery home storage systems including forecast-based operation strategies," Applied Energy, Elsevier, vol. 229(C), pages 884-899.
    9. Litjens, G.B.M.A. & Worrell, E. & van Sark, W.G.J.H.M., 2018. "Economic benefits of combining self-consumption enhancement with frequency restoration reserves provision by photovoltaic-battery systems," Applied Energy, Elsevier, vol. 223(C), pages 172-187.
    10. Parra, David & Patel, Martin K., 2016. "Effect of tariffs on the performance and economic benefits of PV-coupled battery systems," Applied Energy, Elsevier, vol. 164(C), pages 175-187.
    11. Nyholm, Emil & Goop, Joel & Odenberger, Mikael & Johnsson, Filip, 2016. "Solar photovoltaic-battery systems in Swedish households – Self-consumption and self-sufficiency," Applied Energy, Elsevier, vol. 183(C), pages 148-159.
    12. Beck, T. & Kondziella, H. & Huard, G. & Bruckner, T., 2016. "Assessing the influence of the temporal resolution of electrical load and PV generation profiles on self-consumption and sizing of PV-battery systems," Applied Energy, Elsevier, vol. 173(C), pages 331-342.
    13. Sani Hassan, Abubakar & Cipcigan, Liana & Jenkins, Nick, 2017. "Optimal battery storage operation for PV systems with tariff incentives," Applied Energy, Elsevier, vol. 203(C), pages 422-441.
    14. de Sisternes, Fernando J. & Jenkins, Jesse D. & Botterud, Audun, 2016. "The value of energy storage in decarbonizing the electricity sector," Applied Energy, Elsevier, vol. 175(C), pages 368-379.
    15. Parra, David & Swierczynski, Maciej & Stroe, Daniel I. & Norman, Stuart.A. & Abdon, Andreas & Worlitschek, Jörg & O’Doherty, Travis & Rodrigues, Lucelia & Gillott, Mark & Zhang, Xiaojin & Bauer, Chris, 2017. "An interdisciplinary review of energy storage for communities: Challenges and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 730-749.
    16. Barbour, Edward & Parra, David & Awwad, Zeyad & González, Marta C., 2018. "Community energy storage: A smart choice for the smart grid?," Applied Energy, Elsevier, vol. 212(C), pages 489-497.
    17. Robert L. Fares & Michael E. Webber, 2017. "The impacts of storing solar energy in the home to reduce reliance on the utility," Nature Energy, Nature, vol. 2(2), pages 1-10, February.
    18. Barbour, Edward & González, Marta C., 2018. "Projecting battery adoption in the prosumer era," Applied Energy, Elsevier, vol. 215(C), pages 356-370.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alejandro Pena-Bello & Edward Barbour & Marta C. Gonzalez & Selin Yilmaz & Martin K. Patel & David Parra, 2020. "How Does the Electricity Demand Profile Impact the Attractiveness of PV-Coupled Battery Systems Combining Applications?," Energies, MDPI, vol. 13(15), pages 1-19, August.
    2. Parra, David & Mauger, Romain, 2022. "A new dawn for energy storage: An interdisciplinary legal and techno-economic analysis of the new EU legal framework," Energy Policy, Elsevier, vol. 171(C).
    3. Hahnel, Ulf J.J. & Herberz, Mario & Pena-Bello, Alejandro & Parra, David & Brosch, Tobias, 2020. "Becoming prosumer: Revealing trading preferences and decision-making strategies in peer-to-peer energy communities," Energy Policy, Elsevier, vol. 137(C).
    4. Meysam Shamshiri & Chin Kim Gan & Junainah Sardi & Mau Teng Au & Wei Hown Tee, 2020. "Design of Battery Storage System for Malaysia Low Voltage Distribution Network with the Presence of Residential Solar Photovoltaic System," Energies, MDPI, vol. 13(18), pages 1-20, September.
    5. Chatzisideris, Marios D. & Ohms, Pernille K. & Espinosa, Nieves & Krebs, Frederik C. & Laurent, Alexis, 2019. "Economic and environmental performances of organic photovoltaics with battery storage for residential self-consumption," Applied Energy, Elsevier, vol. 256(C).
    6. Mulleriyawage, U.G.K. & Shen, W.X., 2020. "Optimally sizing of battery energy storage capacity by operational optimization of residential PV-Battery systems: An Australian household case study," Renewable Energy, Elsevier, vol. 160(C), pages 852-864.
    7. Pena-Bello, A. & Barbour, E. & Gonzalez, M.C. & Patel, M.K. & Parra, D., 2019. "Optimized PV-coupled battery systems for combining applications: Impact of battery technology and geography," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 978-990.
    8. Okur, Özge & Heijnen, Petra & Lukszo, Zofia, 2021. "Aggregator’s business models in residential and service sectors: A review of operational and financial aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    9. Angenendt, Georg & Merten, Michael & Zurmühlen, Sebastian & Sauer, Dirk Uwe, 2020. "Evaluation of the effects of frequency restoration reserves market participation with photovoltaic battery energy storage systems and power-to-heat coupling," Applied Energy, Elsevier, vol. 260(C).
    10. Mauler, Lukas & Duffner, Fabian & Leker, Jens, 2021. "Economies of scale in battery cell manufacturing: The impact of material and process innovations," Applied Energy, Elsevier, vol. 286(C).
    11. Mulleriyawage, U.G.K. & Shen, W.X., 2021. "Impact of demand side management on optimal sizing of residential battery energy storage system," Renewable Energy, Elsevier, vol. 172(C), pages 1250-1266.
    12. Englberger, Stefan & Abo Gamra, Kareem & Tepe, Benedikt & Schreiber, Michael & Jossen, Andreas & Hesse, Holger, 2021. "Electric vehicle multi-use: Optimizing multiple value streams using mobile storage systems in a vehicle-to-grid context," Applied Energy, Elsevier, vol. 304(C).
    13. Sofiane Kichou & Nikolaos Skandalos & Petr Wolf, 2020. "Evaluation of Photovoltaic and Battery Storage Effects on the Load Matching Indicators Based on Real Monitored Data," Energies, MDPI, vol. 13(11), pages 1-20, May.
    14. Gupta, Ruchi & Pena-Bello, Alejandro & Streicher, Kai Nino & Roduner, Cattia & Farhat, Yamshid & Thöni, David & Patel, Martin Kumar & Parra, David, 2021. "Spatial analysis of distribution grid capacity and costs to enable massive deployment of PV, electric mobility and electric heating," Applied Energy, Elsevier, vol. 287(C).
    15. Sanneke Kloppenburg & Robin Smale & Nick Verkade, 2019. "Technologies of Engagement: How Battery Storage Technologies Shape Householder Participation in Energy Transitions," Energies, MDPI, vol. 12(22), pages 1-15, November.
    16. Kalkbrenner, Bernhard J., 2019. "Residential vs. community battery storage systems – Consumer preferences in Germany," Energy Policy, Elsevier, vol. 129(C), pages 1355-1363.
    17. Minkyu Kim & Chankook Park, 2021. "Academic Topics Related to Household Energy Consumption Using the Future Sign Detection Technique," Energies, MDPI, vol. 14(24), pages 1-24, December.
    18. Fabian Scheller & Robert Burkhardt & Robert Schwarzeit & Russell McKenna & Thomas Bruckner, 2020. "Competition between simultaneous demand-side flexibility options: The case of community electricity storage systems," Papers 2011.05809, arXiv.org.
    19. Scheller, Fabian & Burkhardt, Robert & Schwarzeit, Robert & McKenna, Russell & Bruckner, Thomas, 2020. "Competition between simultaneous demand-side flexibility options: the case of community electricity storage systems," Applied Energy, Elsevier, vol. 269(C).

    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. Zhang, Yijie & Ma, Tao & Yang, Hongxing, 2022. "Grid-connected photovoltaic battery systems: A comprehensive review and perspectives," Applied Energy, Elsevier, vol. 328(C).
    2. Roberts, Mike B. & Bruce, Anna & MacGill, Iain, 2019. "Impact of shared battery energy storage systems on photovoltaic self-consumption and electricity bills in apartment buildings," Applied Energy, Elsevier, vol. 245(C), pages 78-95.
    3. Pena-Bello, A. & Barbour, E. & Gonzalez, M.C. & Patel, M.K. & Parra, D., 2019. "Optimized PV-coupled battery systems for combining applications: Impact of battery technology and geography," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 978-990.
    4. Sofiane Kichou & Nikolaos Skandalos & Petr Wolf, 2020. "Evaluation of Photovoltaic and Battery Storage Effects on the Load Matching Indicators Based on Real Monitored Data," Energies, MDPI, vol. 13(11), pages 1-20, May.
    5. Barbour, Edward & González, Marta C., 2018. "Projecting battery adoption in the prosumer era," Applied Energy, Elsevier, vol. 215(C), pages 356-370.
    6. Azuatalam, Donald & Paridari, Kaveh & Ma, Yiju & Förstl, Markus & Chapman, Archie C. & Verbič, Gregor, 2019. "Energy management of small-scale PV-battery systems: A systematic review considering practical implementation, computational requirements, quality of input data and battery degradation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 555-570.
    7. Scheller, Fabian & Burkhardt, Robert & Schwarzeit, Robert & McKenna, Russell & Bruckner, Thomas, 2020. "Competition between simultaneous demand-side flexibility options: the case of community electricity storage systems," Applied Energy, Elsevier, vol. 269(C).
    8. Fabian Scheller & Robert Burkhardt & Robert Schwarzeit & Russell McKenna & Thomas Bruckner, 2020. "Competition between simultaneous demand-side flexibility options: The case of community electricity storage systems," Papers 2011.05809, arXiv.org.
    9. Hafiz, Faeza & Rodrigo de Queiroz, Anderson & Fajri, Poria & Husain, Iqbal, 2019. "Energy management and optimal storage sizing for a shared community: A multi-stage stochastic programming approach," Applied Energy, Elsevier, vol. 236(C), pages 42-54.
    10. Schopfer, S. & Tiefenbeck, V. & Staake, T., 2018. "Economic assessment of photovoltaic battery systems based on household load profiles," Applied Energy, Elsevier, vol. 223(C), pages 229-248.
    11. Nina Munzke & Felix Büchle & Anna Smith & Marc Hiller, 2021. "Influence of Efficiency, Aging and Charging Strategy on the Economic Viability and Dimensioning of Photovoltaic Home Storage Systems," Energies, MDPI, vol. 14(22), pages 1-46, November.
    12. Bruno Domenech & Gema Calleja & Jordi Olivella, 2021. "Residential Photovoltaic Profitability with Storage under the New Spanish Regulation: A Multi-Scenario Analysis," Energies, MDPI, vol. 14(7), pages 1-17, April.
    13. Lucas Deotti & Wanessa Guedes & Bruno Dias & Tiago Soares, 2020. "Technical and Economic Analysis of Battery Storage for Residential Solar Photovoltaic Systems in the Brazilian Regulatory Context," Energies, MDPI, vol. 13(24), pages 1-30, December.
    14. Parra, David & Swierczynski, Maciej & Stroe, Daniel I. & Norman, Stuart.A. & Abdon, Andreas & Worlitschek, Jörg & O’Doherty, Travis & Rodrigues, Lucelia & Gillott, Mark & Zhang, Xiaojin & Bauer, Chris, 2017. "An interdisciplinary review of energy storage for communities: Challenges and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 730-749.
    15. Andreolli, Francesca & D’Alpaos, Chiara & Moretto, Michele, 2022. "Valuing investments in domestic PV-Battery Systems under uncertainty," Energy Economics, Elsevier, vol. 106(C).
    16. Mulleriyawage, U.G.K. & Shen, W.X., 2020. "Optimally sizing of battery energy storage capacity by operational optimization of residential PV-Battery systems: An Australian household case study," Renewable Energy, Elsevier, vol. 160(C), pages 852-864.
    17. Han, Xuejiao & Garrison, Jared & Hug, Gabriela, 2022. "Techno-economic analysis of PV-battery systems in Switzerland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    18. Zou, Bin & Peng, Jinqing & Li, Sihui & Li, Yi & Yan, Jinyue & Yang, Hongxing, 2022. "Comparative study of the dynamic programming-based and rule-based operation strategies for grid-connected PV-battery systems of office buildings," Applied Energy, Elsevier, vol. 305(C).
    19. Schram, Wouter L. & Lampropoulos, Ioannis & van Sark, Wilfried G.J.H.M., 2018. "Photovoltaic systems coupled with batteries that are optimally sized for household self-consumption: Assessment of peak shaving potential," Applied Energy, Elsevier, vol. 223(C), pages 69-81.
    20. Yazhou Zhao & Xiangxi Qin & Xiangyu Shi, 2022. "A Comprehensive Evaluation Model on Optimal Operational Schedules for Battery Energy Storage System by Maximizing Self-Consumption Strategy and Genetic Algorithm," Sustainability, MDPI, vol. 14(14), pages 1-34, July.

    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:239:y:2019:i:c:p:1343-1355. 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.