IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i15p5465-d873953.html
   My bibliography  Save this article

Distributed ESS Capacity Decision for Home Appliances and Economic Analysis

Author

Listed:
  • Yeon Ju Baik

    (Korea Institute of Finance, Seoul 04538, Korea
    These authors contributed equally to this work.)

  • Ye Gu Kang

    (School of Electrical, Electronics & Communication Engineering, Korea University of Technology and Education, Cheonan-si 31253, Korea
    These authors contributed equally to this work.)

Abstract

The imbalance between the supply and demand of electricity is becoming expansive due to the increase in renewable energy penetration. Consequently, the time-varying electricity price is proposed as a tool to manage the mismatch. To cope with the electricity price difference across time and to extract the benefit to the limit, an energy storage system (ESS) can be a good tool to smooth out electricity usage. Nevertheless, ESS can be expensive due to the high installation cost and centrally managed system. In this paper, we propose a distributed ESS installed in each home appliance. Separately installed batteries can avoid sizeable initial investment costs. We calculated the benefit of the system that mainly stemmed from the electricity price difference and compared the benefits across various sizes of the battery system. In addition, the charging/discharging schedule depends on the power consumption profile and electricity price distribution. Decreasing battery prices and rising electricity price volatility can increase the system’s potential benefit.

Suggested Citation

  • Yeon Ju Baik & Ye Gu Kang, 2022. "Distributed ESS Capacity Decision for Home Appliances and Economic Analysis," Energies, MDPI, vol. 15(15), pages 1-16, July.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:15:p:5465-:d:873953
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/15/5465/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/15/5465/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhou, Bin & Li, Wentao & Chan, Ka Wing & Cao, Yijia & Kuang, Yonghong & Liu, Xi & Wang, Xiong, 2016. "Smart home energy management systems: Concept, configurations, and scheduling strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 30-40.
    2. Severin Borenstein & James Bushnell, 2015. "The US Electricity Industry After 20 Years of Restructuring," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 437-463, August.
    3. van der Stelt, Sander & AlSkaif, Tarek & van Sark, Wilfried, 2018. "Techno-economic analysis of household and community energy storage for residential prosumers with smart appliances," Applied Energy, Elsevier, vol. 209(C), pages 266-276.
    4. Gert Berckmans & Maarten Messagie & Jelle Smekens & Noshin Omar & Lieselot Vanhaverbeke & Joeri Van Mierlo, 2017. "Cost Projection of State of the Art Lithium-Ion Batteries for Electric Vehicles Up to 2030," Energies, MDPI, vol. 10(9), pages 1-20, September.
    5. Heymans, Catherine & Walker, Sean B. & Young, Steven B. & Fowler, Michael, 2014. "Economic analysis of second use electric vehicle batteries for residential energy storage and load-levelling," Energy Policy, Elsevier, vol. 71(C), pages 22-30.
    6. Matthias Pilz & Omar Ellabban & Luluwah Al-Fagih, 2019. "On Optimal Battery Sizing for Households Participating in Demand-Side Management Schemes," Energies, MDPI, vol. 12(18), pages 1-12, September.
    7. Nykvist, Björn & Sprei, Frances & Nilsson, Måns, 2019. "Assessing the progress toward lower priced long range battery electric vehicles," Energy Policy, Elsevier, vol. 124(C), pages 144-155.
    8. Goutam Dutta & Krishnendranath Mitra, 2017. "A literature review on dynamic pricing of electricity," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1131-1145, October.
    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. 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.
    2. Daniele Stampatori & Pier Paolo Raimondi & Michel Noussan, 2020. "Li-Ion Batteries: A Review of a Key Technology for Transport Decarbonization," Energies, MDPI, vol. 13(10), pages 1-23, May.
    3. Paulo Rotella Junior & Luiz Célio Souza Rocha & Sandra Naomi Morioka & Ivan Bolis & Gianfranco Chicco & Andrea Mazza & Karel Janda, 2021. "Economic Analysis of the Investments in Battery Energy Storage Systems: Review and Current Perspectives," Energies, MDPI, vol. 14(9), pages 1-29, April.
    4. Nykvist, Björn & Sprei, Frances & Nilsson, Måns, 2019. "Assessing the progress toward lower priced long range battery electric vehicles," Energy Policy, Elsevier, vol. 124(C), pages 144-155.
    5. Heilmann, Christoph & Wozabal, David, 2021. "How much smart charging is smart?," Applied Energy, Elsevier, vol. 291(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. Xaviery N. Penisa & Michael T. Castro & Jethro Daniel A. Pascasio & Eugene A. Esparcia & Oliver Schmidt & Joey D. Ocon, 2020. "Projecting the Price of Lithium-Ion NMC Battery Packs Using a Multifactor Learning Curve Model," Energies, MDPI, vol. 13(20), pages 1-18, October.
    8. Laurent Franckx, 2019. "Working Paper 01-19 - Future evolution of the car stock in Belgium: CASMO, the new satellite of PLANET," Working Papers 1901, Federal Planning Bureau, Belgium.
    9. Sousa, Nuno & Almeida, Arminda & Coutinho-Rodrigues, João, 2020. "A multicriteria methodology for estimating consumer acceptance of alternative powertrain technologies," Transport Policy, Elsevier, vol. 85(C), pages 18-32.
    10. Flavio Martins & Maria Fatima Almeida & Rodrigo Calili & Agatha Oliveira, 2020. "Design Thinking Applied to Smart Home Projects: A User-Centric and Sustainable Perspective," Sustainability, MDPI, vol. 12(23), pages 1-27, December.
    11. Schreiner, Lena & Madlener, Reinhard, 2022. "Investing in power grid infrastructure as a flexibility option: A DSGE assessment for Germany," Energy Economics, Elsevier, vol. 107(C).
    12. Marc Wentker & Matthew Greenwood & Jens Leker, 2019. "A Bottom-Up Approach to Lithium-Ion Battery Cost Modeling with a Focus on Cathode Active Materials," Energies, MDPI, vol. 12(3), pages 1-18, February.
    13. Hartley, Peter R. & Medlock, Kenneth B. & Jankovska, Olivera, 2019. "Electricity reform and retail pricing in Texas," Energy Economics, Elsevier, vol. 80(C), pages 1-11.
    14. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    15. Csereklyei, Zsuzsanna & Qu, Songze & Ancev, Tihomir, 2019. "The effect of wind and solar power generation on wholesale electricity prices in Australia," Energy Policy, Elsevier, vol. 131(C), pages 358-369.
    16. Thorne, Rebecca Jayne & Hovi, Inger Beate & Figenbaum, Erik & Pinchasik, Daniel Ruben & Amundsen, Astrid Helene & Hagman, Rolf, 2021. "Facilitating adoption of electric buses through policy: Learnings from a trial in Norway," Energy Policy, Elsevier, vol. 155(C).
    17. Bialek, Sylwia & Gregory, Jack & Revesz, Richard L., 2022. "Still your grandfather's boiler: Estimating the effects of the Clean Air Act's grandfathering provisions," Working Papers 05/2022, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    18. Wakiyama, Takako & Zusman, Eric, 2021. "The impact of electricity market reform and subnational climate policy on carbon dioxide emissions across the United States: A path analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    19. Terlouw, Tom & AlSkaif, Tarek & Bauer, Christian & van Sark, Wilfried, 2019. "Optimal energy management in all-electric residential energy systems with heat and electricity storage," Applied Energy, Elsevier, vol. 254(C).
    20. Rivera, Nilza & Guzmán, Juan Ignacio & Jara, José Joaquín & Lagos, Gustavo, 2021. "Evaluation of econometric models of secondary refined copper supply," Resources Policy, Elsevier, vol. 73(C).

    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:gam:jeners:v:15:y:2022:i:15:p:5465-:d:873953. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.