IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v364y2024ics0306261924004513.html
   My bibliography  Save this article

Techno-economic assessment of isolated micro-grids with second-life batteries: A reliability-oriented iterative design framework

Author

Listed:
  • Bai, Hanyu
  • Lei, Shunbo
  • Geng, Sijia
  • Hu, Xiaosong
  • Li, Zhaojian
  • Song, Ziyou

Abstract

Reusing lithium-ion batteries retired from electric vehicles (EVs) has received great attention as the performance of these batteries is still adequate for many stationary energy storage applications, such as micro-grids (MGs). To date, the economic and technical performance of second-life batteries (SLBs) in isolated MG systems remains obscure. Hence, this study focuses on the economic assessment of SLBs in an isolated 100% renewable MG, in order to identify a profitable application that promotes SLBs. The MG capacity design parameters are obtained by a two-stage chance-constrained stochastic optimization framework. To enhance the robustness of the MG design, a reliability-oriented iterative design process is proposed. This process involves continuous updates to the MG design, guided by validation results, until all specified requirements are satisfied. The lifetime of SLBs is determined using a semi-empirical degradation model seamlessly integrated into the validation process. Economic comparisons between SLBs and first-life batteries (FLBs) are conducted under identical design requirements, with consideration given to estimating the “price ceiling” and the impact of market factors. The results show that SLBs prove to be a more cost-effective option, especially when there is a demand for high reliability standards and the local electricity prices are comparatively lower.

Suggested Citation

  • Bai, Hanyu & Lei, Shunbo & Geng, Sijia & Hu, Xiaosong & Li, Zhaojian & Song, Ziyou, 2024. "Techno-economic assessment of isolated micro-grids with second-life batteries: A reliability-oriented iterative design framework," Applied Energy, Elsevier, vol. 364(C).
    • Handle: RePEc:eee:appene:v:364:y:2024:i:c:s0306261924004513
    DOI: 10.1016/j.apenergy.2024.123068
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261924004513
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2024.123068?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. Gabrielli, Paolo & Gazzani, Matteo & Martelli, Emanuele & Mazzotti, Marco, 2018. "Optimal design of multi-energy systems with seasonal storage," Applied Energy, Elsevier, vol. 219(C), pages 408-424.
    2. Bai, Bo & Xiong, Siqin & Song, Bo & Xiaoming, Ma, 2019. "Economic analysis of distributed solar photovoltaics with reused electric vehicle batteries as energy storage systems in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 213-229.
    3. Steckel, Tobiah & Kendall, Alissa & Ambrose, Hanjiro, 2021. "Applying levelized cost of storage methodology to utility-scale second-life lithium-ion battery energy storage systems," Applied Energy, Elsevier, vol. 300(C).
    4. Song, Ziyou & Feng, Shuo & Zhang, Lei & Hu, Zunyan & Hu, Xiaosong & Yao, Rui, 2019. "Economy analysis of second-life battery in wind power systems considering battery degradation in dynamic processes: Real case scenarios," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    5. Song, Ziyou & Yang, Niankai & Lin, Xinfan & Pinto Delgado, Fanny & Hofmann, Heath & Sun, Jing, 2022. "Progression of cell-to-cell variation within battery modules under different cooling structures," Applied Energy, Elsevier, vol. 312(C).
    6. Gu, Xubo & Bai, Hanyu & Cui, Xiaofan & Zhu, Juner & Zhuang, Weichao & Li, Zhaojian & Hu, Xiaosong & Song, Ziyou, 2024. "Challenges and opportunities for second-life batteries: Key technologies and economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    7. Qiu, Dawei & Dong, Zihang & Zhang, Xi & Wang, Yi & Strbac, Goran, 2022. "Safe reinforcement learning for real-time automatic control in a smart energy-hub," Applied Energy, Elsevier, vol. 309(C).
    8. Mishra, Partha Pratim & Latif, Aadil & Emmanuel, Michael & Shi, Ying & McKenna, Killian & Smith, Kandler & Nagarajan, Adarsh, 2020. "Analysis of degradation in residential battery energy storage systems for rate-based use-cases," Applied Energy, Elsevier, vol. 264(C).
    9. Zhang, Yijie & Ma, Tao & Elia Campana, Pietro & Yamaguchi, Yohei & Dai, Yanjun, 2020. "A techno-economic sizing method for grid-connected household photovoltaic battery systems," Applied Energy, Elsevier, vol. 269(C).
    10. Shiping Geng & Caixia Tan & Dongxiao Niu & Xiaopeng Guo, 2021. "Optimal Allocation Model of Virtual Power Plant Capacity considering Electric Vehicles," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-19, June.
    11. Song, Ziyou & Li, Jianqiu & Han, Xuebing & Xu, Liangfei & Lu, Languang & Ouyang, Minggao & Hofmann, Heath, 2014. "Multi-objective optimization of a semi-active battery/supercapacitor energy storage system for electric vehicles," Applied Energy, Elsevier, vol. 135(C), pages 212-224.
    12. 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).
    13. Mohammadi, Mohammad & Noorollahi, Younes & Mohammadi-ivatloo, Behnam & Yousefi, Hossein, 2017. "Energy hub: From a model to a concept – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 1512-1527.
    14. Assunção, André & Moura, Pedro S. & de Almeida, Aníbal T., 2016. "Technical and economic assessment of the secondary use of repurposed electric vehicle batteries in the residential sector to support solar energy," Applied Energy, Elsevier, vol. 181(C), pages 120-131.
    15. Zhongwen Li & Chuanzhi Zang & Peng Zeng & Haibin Yu, 2016. "Combined Two-Stage Stochastic Programming and Receding Horizon Control Strategy for Microgrid Energy Management Considering Uncertainty," Energies, MDPI, vol. 9(7), pages 1-16, June.
    16. Martinez-Laserna, E. & Gandiaga, I. & Sarasketa-Zabala, E. & Badeda, J. & Stroe, D.-I. & Swierczynski, M. & Goikoetxea, A., 2018. "Battery second life: Hype, hope or reality? A critical review of the state of the art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 701-718.
    17. Merei, Ghada & Moshövel, Janina & Magnor, Dirk & Sauer, Dirk Uwe, 2016. "Optimization of self-consumption and techno-economic analysis of PV-battery systems in commercial applications," Applied Energy, Elsevier, vol. 168(C), pages 171-178.
    18. Xu, Xiao & Hu, Weihao & Liu, Wen & Du, Yuefang & Huang, Rui & Huang, Qi & Chen, Zhe, 2021. "Look-ahead risk-constrained scheduling for an energy hub integrated with renewable energy," Applied Energy, Elsevier, vol. 297(C).
    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. Gu, Xubo & Bai, Hanyu & Cui, Xiaofan & Zhu, Juner & Zhuang, Weichao & Li, Zhaojian & Hu, Xiaosong & Song, Ziyou, 2024. "Challenges and opportunities for second-life batteries: Key technologies and economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    2. Al-Wreikat, Yazan & Attfield, Emily Kate & Sodré, José Ricardo, 2022. "Model for payback time of using retired electric vehicle batteries in residential energy storage systems," Energy, Elsevier, vol. 259(C).
    3. Emanuele Michelini & Patrick Höschele & Florian Ratz & Michael Stadlbauer & Werner Rom & Christian Ellersdorfer & Jörg Moser, 2023. "Potential and Most Promising Second-Life Applications for Automotive Lithium-Ion Batteries Considering Technical, Economic and Legal Aspects," Energies, MDPI, vol. 16(6), pages 1-21, March.
    4. Steckel, Tobiah & Kendall, Alissa & Ambrose, Hanjiro, 2021. "Applying levelized cost of storage methodology to utility-scale second-life lithium-ion battery energy storage systems," Applied Energy, Elsevier, vol. 300(C).
    5. Braco, Elisa & San Martín, Idoia & Sanchis, Pablo & Ursúa, Alfredo & Stroe, Daniel-Ioan, 2022. "State of health estimation of second-life lithium-ion batteries under real profile operation," Applied Energy, Elsevier, vol. 326(C).
    6. Horesh, Noah & Quinn, Casey & Wang, Hongjie & Zane, Regan & Ferry, Mike & Tong, Shijie & Quinn, Jason C., 2021. "Driving to the future of energy storage: Techno-economic analysis of a novel method to recondition second life electric vehicle batteries," Applied Energy, Elsevier, vol. 295(C).
    7. Ramos-Teodoro, Jerónimo & Rodríguez, Francisco & Berenguel, Manuel & Torres, José Luis, 2018. "Heterogeneous resource management in energy hubs with self-consumption: Contributions and application example," Applied Energy, Elsevier, vol. 229(C), pages 537-550.
    8. Steckel, Tobiah & Kendall, Alissa & Ambrose, Hanjiro, 2021. "Applying levelized cost of storage methodology to utility-scale second-life lithium-ion battery energy storage systems," Institute of Transportation Studies, Working Paper Series qt2ws2c6jw, Institute of Transportation Studies, UC Davis.
    9. Hong Eun Moon & Yoon Hee Ha & Kyung Nam Kim, 2022. "Comparative Economic Analysis of Solar PV and Reused EV Batteries in the Residential Sector of Three Emerging Countries—The Philippines, Indonesia, and Vietnam," Energies, MDPI, vol. 16(1), pages 1-26, December.
    10. Wu, Wei & Lin, Boqiang & Xie, Chunping & Elliott, Robert J.R. & Radcliffe, Jonathan, 2020. "Does energy storage provide a profitable second life for electric vehicle batteries?," Energy Economics, Elsevier, vol. 92(C).
    11. 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).
    12. Lai, Xin & Huang, Yunfeng & Deng, Cong & Gu, Huanghui & Han, Xuebing & Zheng, Yuejiu & Ouyang, Minggao, 2021. "Sorting, regrouping, and echelon utilization of the large-scale retired lithium batteries: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    13. Xu, Jing & Wang, Xiaoying & Gu, Yujiong & Ma, Suxia, 2023. "A data-based day-ahead scheduling optimization approach for regional integrated energy systems with varying operating conditions," Energy, Elsevier, vol. 283(C).
    14. Muhammad Khalid, 2019. "A Review on the Selected Applications of Battery-Supercapacitor Hybrid Energy Storage Systems for Microgrids," Energies, MDPI, vol. 12(23), pages 1-34, November.
    15. Shahjalal, Mohammad & Roy, Probir Kumar & Shams, Tamanna & Fly, Ashley & Chowdhury, Jahedul Islam & Ahmed, Md. Rishad & Liu, Kailong, 2022. "A review on second-life of Li-ion batteries: prospects, challenges, and issues," Energy, Elsevier, vol. 241(C).
    16. 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.
    17. Aree Wangsupphaphol & Surachai Chaitusaney & Mohamed Salem, 2023. "A Techno-Economic Assessment of a Second-Life Battery and Photovoltaics Hybrid Power Source for Sustainable Electric Vehicle Home Charging," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    18. Bartolini, Andrea & Mazzoni, Stefano & Comodi, Gabriele & Romagnoli, Alessandro, 2021. "Impact of carbon pricing on distributed energy systems planning," Applied Energy, Elsevier, vol. 301(C).
    19. Merlin Frank & Daniel Serafin Holz & Domenic Klohs & Christian Offermanns & Heiner Hans Heimes & Achim Kampker, 2024. "Identification and Mitigation of Predominant Challenges in the Utilization of Aged Traction Batteries within Stationary Second-Life Scenarios," Energies, MDPI, vol. 17(5), pages 1-17, February.
    20. Zongwei Liu & Xinglong Liu & Han Hao & Fuquan Zhao & Amer Ahmad Amer & Hassan Babiker, 2020. "Research on the Critical Issues for Power Battery Reusing of New Energy Vehicles in China," Energies, MDPI, vol. 13(8), pages 1-19, April.

    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:364:y:2024:i:c:s0306261924004513. 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.