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Technoeconomic model of second-life batteries for utility-scale solar considering calendar and cycle aging

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  • Mathews, Ian
  • Xu, Bolun
  • He, Wei
  • Barreto, Vanessa
  • Buonassisi, Tonio
  • Peters, Ian Marius

Abstract

The rapid proliferation of electric vehicles is creating a fleet of millions of lithium-ion batteries that will be deemed unsuitable for the transportation industry once they reach 80% of their original capacity. The repurposing and deployment of these batteries as stationary energy storage provides an opportunity to reduce the cost of solar-plus-storage systems, if the economics can be proven. We present a techno-economic model of a solar-plus-second-life energy storage project in California, including a data-based model of lithium nickel manganese cobalt oxide battery degradation, to predict its capacity fade over time, and compare it to a project that uses a new lithium-ion battery. By setting certain control policy limits, to minimize cycle aging, we show that a system with state-of-charge limits in a 65–15% range, extends the project life to over 16 years, assuming a battery reaches its end-of-life at 60% of its original capacity. Under these conditions, a second-life project is more economically favorable than a project that uses a new battery and 85–20% state-of-charge limits, for second-life battery costs that are <80% of the new battery. The same system reaches break-even and profitability for second-life battery costs that are <60% of the new battery. Our model shows that using current benchmarked data for the capital and operations and maintenance costs of solar-plus-storage systems, and a semi-empirical data-based degradation model, it is possible for electric vehicle manufacturers to sell second-life batteries for <60% of their original price to developers of profitable solar-plus-storage projects.

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  • Mathews, Ian & Xu, Bolun & He, Wei & Barreto, Vanessa & Buonassisi, Tonio & Peters, Ian Marius, 2020. "Technoeconomic model of second-life batteries for utility-scale solar considering calendar and cycle aging," Applied Energy, Elsevier, vol. 269(C).
    • Handle: RePEc:eee:appene:v:269:y:2020:i:c:s0306261920306395
    DOI: 10.1016/j.apenergy.2020.115127
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    17. Binghong Han & Jonathon R. Harding & Johanna K. S. Goodman & Zhuhua Cai & Quinn C. Horn, 2022. "End-of-Charge Temperature Rise and State-of-Health Evaluation of Aged Lithium-Ion Battery," Energies, MDPI, vol. 16(1), pages 1-17, December.
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    21. Ziad M. Ali & Martin Calasan & Shady H. E. Abdel Aleem & Francisco Jurado & Foad H. Gandoman, 2023. "Applications of Energy Storage Systems in Enhancing Energy Management and Access in Microgrids: A Review," Energies, MDPI, vol. 16(16), pages 1-41, August.
    22. Ganna Kostenko & Artur Zaporozhets, 2024. "Transition from Electric Vehicles to Energy Storage: Review on Targeted Lithium-Ion Battery Diagnostics," Energies, MDPI, vol. 17(20), pages 1-17, October.
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    24. Kang, Hyuna & Jung, Seunghoon & Lee, Minhyun & Hong, Taehoon, 2022. "How to better share energy towards a carbon-neutral city? A review on application strategies of battery energy storage system in city," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
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