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The nature of combining energy storage applications for residential battery technology

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  • 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.

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  • 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
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    References listed on IDEAS

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    Cited by:

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    5. 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.
    6. 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).
    7. 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.
    8. 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.
    9. 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).
    10. 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).
    11. 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).
    12. 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.
    13. 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).
    14. 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.
    15. 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).
    16. 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.
    17. Kalkbrenner, Bernhard J., 2019. "Residential vs. community battery storage systems – Consumer preferences in Germany," Energy Policy, Elsevier, vol. 129(C), pages 1355-1363.
    18. 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.
    19. 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.
    20. 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).

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