Economics of Battery Use in Agriculture: Economic Viability of Renewable Energy Complemented with Batteries in Agriculture

The production of renewable energy fluctuates in terms of sun and wind and must be supplemented by storage in the system. On an individual basis, i.e., for centralized electricity production and predominantly self-consumption, the use of batteries is considered here. Possible future development scenarios were simulated based on current price relationships (status quo). In the status quo, a selling price for PV electricity of 13 Euro cents (ct)ct/kWh was assumed with a production cost of 11 ct/kWh. The selling price of wind power is 5 ct/kWh with a production cost of 3 ct/kWh. The cost of storing electricity in a battery increases the price by 33 ct/kWh. A price of 20 ct/kWh is assumed for electricity purchases by companies. In the status quo, the use of batteries is not economical given the assumed price relationships. Changing the framework conditions, such as those of the legislature in Germany with the nuclear power phase-out and in the EU with the coal exit and decarbonization, will lead to increased availability of (fluctuating) renewable electricity, especially during the day. The purchase of electricity at other times, when the supply is scarce, can lead to increased electricity prices, especially at night. Together with falling costs for storage, the use of batteries for centralized power generators could be very interesting in the future. The method used in this study is nonlinear optimization of the target function costs of electricity supply in the developed simulation model. The results can also be transferred to other countries, as the assumed trends apply worldwide.