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Degrees of displacement: The impact of household PV battery prosumage on utility generation and storage

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  • Kelvin Say
  • Wolf-Peter Schill
  • Michele John

Abstract

Reductions in the cost of PV and batteries encourage households to invest in PV battery prosumage. We explore the implications for the rest of the power sector by applying two open-source techno-economic models to scenarios in Western Australia for the year 2030. Household PV capacity generally substitutes utility PV, but slightly less so as additional household batteries are installed. Wind power is less affected, especially in scenarios with higher shares of renewables. With household batteries operating to maximise self-consumption, utility battery capacities are hardly substituted. Wholesale prices to supply households, including those not engaging in prosumage, slightly decrease, while prices for other consumers slightly increase. We conclude that the growth of prosumage has implications on the various elements of the power sector and should be more thoroughly considered by investors, regulators, and power sector planners.

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  • Kelvin Say & Wolf-Peter Schill & Michele John, 2020. "Degrees of displacement: The impact of household PV battery prosumage on utility generation and storage," Papers 2003.06987, arXiv.org.
    • Handle: RePEc:arx:papers:2003.06987
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    3. Ayat-Allah Bouramdane & Alexis Tantet & Philippe Drobinski, 2021. "Utility-Scale PV-Battery versus CSP-Thermal Storage in Morocco: Storage and Cost Effect under Penetration Scenarios," Post-Print hal-03344439, HAL.
    4. Gaete-Morales, Carlos & Kittel, Martin & Roth, Alexander & Schill, Wolf-Peter, 2021. "DIETERpy: A Python framework for the Dispatch and Investment Evaluation Tool with Endogenous Renewables," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 15.
    5. Say, Kelvin & John, Michele, 2021. "Molehills into mountains: Transitional pressures from household PV-battery adoption under flat retail and feed-in tariffs," Energy Policy, Elsevier, vol. 152(C).
    6. Javier L'opez Prol & Wolf-Peter Schill, 2020. "The Economics of Variable Renewables and Electricity Storage," Papers 2012.15371, arXiv.org.
    7. Kobashi, Takuro & Choi, Younghun & Hirano, Yujiro & Yamagata, Yoshiki & Say, Kelvin, 2022. "Rapid rise of decarbonization potentials of photovoltaics plus electric vehicles in residential houses over commercial districts," Applied Energy, Elsevier, vol. 306(PB).
    8. Wanessa Guedes & Lucas Deotti & Bruno Dias & Tiago Soares & Leonardo Willer de Oliveira, 2022. "Community Energy Markets with Battery Energy Storage Systems: A General Modeling with Applications," Energies, MDPI, vol. 15(20), pages 1-22, October.
    9. Stöckl, Fabian & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Optimal supply chains and power sector benefits of green hydrogen," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11.
    10. Younghun Choi & Takuro Kobashi & Yoshiki Yamagata & Akito Murayama, 2021. "Assessment of waterfront office redevelopment plan on optimal building energy demand and rooftop photovoltaics for urban decarbonization," Papers 2108.09029, arXiv.org.
    11. Aniello, Gianmarco & Bertsch, Valentin, 2023. "Shaping the energy transition in the residential sector: Regulatory incentives for aligning household and system perspectives," Applied Energy, Elsevier, vol. 333(C).
    12. Qusay Hassan & Bartosz Pawela & Ali Hasan & Marek Jaszczur, 2022. "Optimization of Large-Scale Battery Storage Capacity in Conjunction with Photovoltaic Systems for Maximum Self-Sustainability," Energies, MDPI, vol. 15(10), pages 1-21, May.
    13. Say, Kelvin & Csereklyei, Zsuzsanna & Brown, Felix Gabriel & Wang, Changlong, 2023. "The economics of public transport electrification: A case study from Victoria, Australia," Energy Economics, Elsevier, vol. 120(C).
    14. Kirchem, Dana & Schill, Wolf-Peter, 2023. "Power sector effects of green hydrogen production in Germany," Energy Policy, Elsevier, vol. 182(C).
    15. Ayat-allah Bouramdane & Alexis Tantet & Philippe Drobinski, 2021. "Utility-Scale PV-Battery versus CSP-Thermal Storage in Morocco: Storage and Cost Effect under Penetration Scenarios," Energies, MDPI, vol. 14(15), pages 1-43, August.
    16. Myriam Caratù & Valerio Brescia & Ilaria Pigliautile & Paolo Biancone, 2023. "Assessing Energy Communities’ Awareness on Social Media with a Content and Sentiment Analysis," Sustainability, MDPI, vol. 15(8), pages 1-28, April.

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