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Business case analysis of hybrid systems consisting of battery storage and power-to-heat on the German energy market

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  • Draheim, Patrick
  • Schlachter, Uli
  • Wigger, Henning
  • Worschech, Alena
  • Brand, Urte
  • Diekmann, Theys
  • Schuldt, Frank
  • Hanke, Benedikt
  • von Maydell, Karsten
  • Vogt, Thomas

Abstract

Declining prices on frequency containment reserve (FCR) markets endanger the profitability of battery energy storage systems (BESS). BESS combined with power-to-heat units could improve the economics both by supplying higher power rates on FCR markets and by converting excessive power into heat. Two cases were investigated with a techno-economic model using primary operation and market data of 2018/2019. The system amortises after 12 years with a net present value of two million € operating on the FCR market. No improvement was realized by additional arbitrage trading. Taxes, levies and charges frameworks are crucial for the economic success of hybrid systems.

Suggested Citation

  • Draheim, Patrick & Schlachter, Uli & Wigger, Henning & Worschech, Alena & Brand, Urte & Diekmann, Theys & Schuldt, Frank & Hanke, Benedikt & von Maydell, Karsten & Vogt, Thomas, 2020. "Business case analysis of hybrid systems consisting of battery storage and power-to-heat on the German energy market," Utilities Policy, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:juipol:v:67:y:2020:i:c:s0957178720301041
    DOI: 10.1016/j.jup.2020.101110
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    References listed on IDEAS

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    1. Braeuer, Fritz & Rominger, Julian & McKenna, Russell & Fichtner, Wolf, 2019. "Battery storage systems: An economic model-based analysis of parallel revenue streams and general implications for industry," Applied Energy, Elsevier, vol. 239(C), pages 1424-1440.
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    4. Melo, S.P. & Brand, U. & Vogt, T. & Telle, J.S. & Schuldt, F. & Maydell, K.v., 2019. "Primary frequency control provided by hybrid battery storage and power-to-heat system," Applied Energy, Elsevier, vol. 233, pages 220-231.
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    2. Collath, Nils & Cornejo, Martin & Engwerth, Veronika & Hesse, Holger & Jossen, Andreas, 2023. "Increasing the lifetime profitability of battery energy storage systems through aging aware operation," Applied Energy, Elsevier, vol. 348(C).
    3. Pakeeza Bano & Kashif Imran & Abdul Kashif Janjua & Abdullah Abusorrah & Kinza Fida & Hesham Alhumade, 2023. "System and Market-Wide Impact Analysis of Coordinated Demand Response and Battery Storage Operation by a Load-Serving Entity," Energies, MDPI, vol. 16(4), pages 1-22, February.
    4. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2022. "The impact of a subsidized tax deduction on residential solar photovoltaic-battery energy storage systems," Utilities Policy, Elsevier, vol. 75(C).

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