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Techno-economic viability of battery storage for residential applications
Mälardalen University, School of Business, Society and Engineering. (Sustainable energy systems)ORCID iD: 0000-0002-0833-6938
2024 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Battery storage has emerged as a promising solution in various energy systems. However, challenges exist regarding the viability of batteries in practical stationary applications. Factors such as the capital and operational costs, relatively short lifetime, and battery degradation are among crucial factors which have significant impact on battery profitability. To make batteries more viable technology, effective battery management is a necessity. However, there are multiple critical factors which need to be addressed for effective battery utilization and management in real-life applications under dynamic operational conditions.

In this thesis, different battery modelling approaches within battery operational management are proposed. Each proposed scenario consists of a set of specific methods for the estimation of battery performance, capacity degradation, remaining useful life, state-of-charge, state-of-health, and state-of- power.Moreover, the study explores strategies for efficient battery utilization to maximize sustained profitability. Accordingly, the study deals with 32 different state-of-charge operating control strategies as well as different charge/discharge rates (low, moderate, high) to evaluate their impact on techno-economic profitability of a battery system in a grid-connected residential application. Moreover, two day-ahead and optimization-based operation scheduling strategies to maximize battery profitability are proposed. Each scenario employs unique approaches to make optimal decisions for optimal battery utilization. The first scenario aims to optimize short-term profitability by prioritizing revenue gains. Conversely, the second scenario proposes a smart strategy capable of making intelligent decisions on a wide range of decision-variables to simultaneously maximize daily revenue and minimize daily degradation costs.

The key findings reveal that overlooking or simplifying assumptions about multiple critical aspects of battery behavior led to an improper battery management system in practical applications under dynamic operational conditions. Selecting a proper state-of-charge control strategy positively affects the profitability in which alteration of the allowable SOC window from (40%–90%) to (10%–60%) increase the battery lifetime from 10.2 years to 14 years leading to 31.6% improvement in net present value. The key findings showcase how a smart battery scheduling strategy that strike optimal balance between revenue and degradation achieves impressive profit (18-20 €/kWh/year), short payback (7.5 years), and extended lifespan (12.5 years), contrasting revenue-focused scenarios, ensuring sustained profitability for battery owners in residential applications. The findings offer valuable insights for decision-makers, enabling informed strategic choices and profitable solutions.

Place, publisher, year, edition, pages
Västerås: Mälardalens universitet, 2024.
Series
Mälardalen University Press Dissertations, ISSN 1651-4238 ; 398
National Category
Energy Engineering Energy Systems
Research subject
Energy- and Environmental Engineering
Identifiers
URN: urn:nbn:se:mdh:diva-64725ISBN: 978-91-7485-623-1 (print)OAI: oai:DiVA.org:mdh-64725DiVA, id: diva2:1811353
Public defence
2024-01-12, Lambda, Mälardalens universitet, Västerås, 09:15 (English)
Opponent
Supervisors
Available from: 2023-11-14 Created: 2023-11-13 Last updated: 2023-12-31Bibliographically approved
List of papers
1. The impact of battery operating management strategies on life cycle cost assessment in real power market for a grid-connected residential battery application
Open this publication in new window or tab >>The impact of battery operating management strategies on life cycle cost assessment in real power market for a grid-connected residential battery application
2023 (English)In: Energy, ISSN 0360-5442, E-ISSN 1873-6785, Vol. 270, article id 126829Article in journal (Refereed) Published
Abstract [en]

The relatively short lifetime of batteries is one of the crucial factors that affects its economic viability in current electricity markets. Thus, to make batteries a more viable technology in real power market from life cycle cost assessment perspective, full understanding of battery ageing parameters and which operating control strategies cause slower degradation rate is essential and still an open problem. This study deals with the 32 different battery operating control strategies to evaluate their importance on cyclic and calendric degradation, lifetime, and life cycle cost assessment of a battery system in a grid-connected residential application. In other words, it is evaluated that at which operating control strategy the system simulation results in a more beneficial system from techno-economic perspective. A battery modelling scenario is proposed to accurately estimate battery performance, degradation, and lifetime under real operational condition given different operating control strategies. An operational strategy, which benefits from the dynamic real-time electricity price scheme, is conducted to simulate the system operation. The key results show that selecting a proper state-of-charge control strategy positively affects the battery lifetime and consequently its net-present-value, in which the best strategy led to 30% improvement in net-present-value compared to the worst strategy.

Place, publisher, year, edition, pages
Elsevier Ltd, 2023
Keywords
Arbitrage application, Battery lifetime improvement, Battery SOC control strategies, Calendric and cyclic ageing, Life cycle cost assessments under real power market, Stationary battery storage
National Category
Energy Engineering
Identifiers
urn:nbn:se:mdh:diva-61958 (URN)10.1016/j.energy.2023.126829 (DOI)000944897100001 ()2-s2.0-85147883187 (Scopus ID)
Available from: 2023-02-22 Created: 2023-02-22 Last updated: 2023-11-13Bibliographically approved
2. Techno-economic assessment of battery storage integrated into a grid-connected and solar-powered residential building under different battery ageing models
Open this publication in new window or tab >>Techno-economic assessment of battery storage integrated into a grid-connected and solar-powered residential building under different battery ageing models
2022 (English)In: Applied Energy, ISSN 0306-2619, E-ISSN 1872-9118, Vol. 318, article id 119166Article in journal (Refereed) Published
Abstract [en]

Battery storage in solar residential applications has the potential to improve system flexibility under high renewable energy penetration. A better understanding of the dynamic operational conditions of batteries is of high importance for the technical and economic feasibility of the associated system. This study evaluates key parameters for the proper battery management design, control, and optimization of a battery system integrated into a grid-connected, solar-powered building. Three different battery modelling scenarios are proposed in terms of battery ageing and lifetimes, internal states, and control strategies. Each proposed scenario consists of a set of specific methods for the estimation of battery voltage-current characteristics, capacity degradation, remaining lifetime, states of charge, states of health, and states of power. A criteria-based operational strategy linked to a nondominated sorting genetic algorithm (NSGA_II) is constructed for the simulation and multiobjective optimization of the system. The self-sufficiency ratio and life-cycle cost of a battery are considered the technical and economic goals, which are influenced by the capacity degradation and achievable lifetime of the battery. Moreover, the annual battery degradation cost and self-consumption ratio are calculated over the project lifetime. The comparison between the techno-economic optimization results obtained under three battery modelling scenarios indicate that a more realistic design and a superior techno-economic assessment are obtained under Model 3, which is able to simulate battery degradation considering all ageing influence parameters under real operational conditions. In comparison with Model 3, Model 1 which neglects the battery degradation, techno-economically leads an overly optimistic result and also Model 2, which was based on linear capacity degradation regardless of the observed dynamic operational conditions, leads an excessively pessimistic result, implying that applying several simplifying assumptions for a battery operation simulation in a real-life application greatly affects the resulting battery state of charge, state of power, and state of health estimations, leading to an improper battery management system and consequently to the misestimation of techno-economic objective functions. The results prove that the real design and techno-economic assessment of a battery in a solar-powered application highly depend on battery operations in which the seasonal photovoltaic (PV) power production affects the rates of calendric and cyclic battery degradation. 

Place, publisher, year, edition, pages
Elsevier Ltd, 2022
Keywords
Battery ageing models, Battery sizing, Distributed renewable energy, Photovoltaic, Stationary battery storage, Techno-economic optimization
National Category
Energy Engineering
Identifiers
urn:nbn:se:mdh:diva-58241 (URN)10.1016/j.apenergy.2022.119166 (DOI)000799559500004 ()2-s2.0-85129702383 (Scopus ID)
Available from: 2022-05-18 Created: 2022-05-18 Last updated: 2023-11-13Bibliographically approved
3. Smart and Optimization-Based Operation Scheduling Strategies for Maximizing Battery Profitability and Longevity in Grid-Connected Application
Open this publication in new window or tab >>Smart and Optimization-Based Operation Scheduling Strategies for Maximizing Battery Profitability and Longevity in Grid-Connected Application
Show others...
(English)Manuscript (preprint) (Other (popular science, discussion, etc.))
Keywords
Day-ahead optimization-based battery operation scheduling, price arbitrage within real-time electricity price tariff, Sustained profitability optimization, Degradation cost minimization, Revenue maximization, residential-grid connected battery application
National Category
Energy Engineering Energy Systems
Research subject
Energy- and Environmental Engineering
Identifiers
urn:nbn:se:mdh:diva-64720 (URN)10.2139/ssrn.4574091 (DOI)
Available from: 2023-11-12 Created: 2023-11-12 Last updated: 2023-12-11Bibliographically approved
4. Techno-economic impacts of battery performance models and control strategies on optimal design of a grid-connected PV system
Open this publication in new window or tab >>Techno-economic impacts of battery performance models and control strategies on optimal design of a grid-connected PV system
2021 (English)In: Energy Conversion and Management, ISSN 0196-8904, E-ISSN 1879-2227, Vol. 245, article id 114617Article in journal (Refereed) Published
Abstract [en]

A battery storage has emerged as the most widely-used storage option, due to its flexible and complementary functionality for renewable energy systems such as solar PV and wind power. In order to ensure the efficient operation of batteries in energy systems, a proper battery model is essential in predicting realistic battery performance under various operating conditions. Accurate knowledge of the state of charge, state of power, and battery efficiency is a necessity for the development of advanced grid management applications. This paper investigates the techno-economic impacts of two battery modelling scenarios on the sizing and optimization of a grid-connected PV-battery system. Scenario 1 is based on a common simple battery model and control strategy which represents the battery status without reflecting dynamic behavior. By contrast, Scenario 2 is based on a complex battery model involving estimation of battery current-voltage characteristics under various operating conditions. A rule-based operational strategy linked to a non-dominated sorting genetic algorithm is further employed for the simulation and multi-objective optimization of a grid-connected hybrid PV-battery system. The battery life cycle cost and the self-sufficiency ratio are analyzed and optimized as objective functions, and battery capacity constitutes as a decision variable. The results show that in order to reach the same self-sufficiency ratio, the optimization of a hybrid energy system based on Scenario 1 leads to solutions with a higher life cycle cost and requiring bigger battery capacity, compared to that of Scenario 2. Moreover, under the same design parameters, the system optimization based on Scenario 2 delivers more power to the end-user, which leads to a higher selfsufficiency ratio compared to when the system is simulated based on Scenario 1. This study proves that an efficient battery model with sufficient accuracy is techno-economically more beneficial, and leads to more accurate battery sizing.

National Category
Energy Engineering
Identifiers
urn:nbn:se:mdh:diva-55891 (URN)10.1016/j.enconman.2021.114617 (DOI)000693258300007 ()2-s2.0-85113175641 (Scopus ID)
Available from: 2021-09-16 Created: 2021-09-16 Last updated: 2023-11-13Bibliographically approved
5. Techno-economic evaluation of a battery system integrated into a residential grid-connected PV system considering battery degradation
Open this publication in new window or tab >>Techno-economic evaluation of a battery system integrated into a residential grid-connected PV system considering battery degradation
2021 (English)In: Energy Proceedings, Scanditale AB , 2021, Vol. 15Conference paper, Published paper (Other academic)
Abstract [en]

Stationary battery storages become a promising solution for improving flexibility of renewable energy system to balance the fluctuating of power production and demand. However, each application has a specific operational strategy, consequently a specific dynamic operational profile which leads to a different estimated battery lifetime due to the degradation of battery capacity over its operation in the application. An accurate knowledge about battery lifetime, and battery state of health at different operational conditions is important to ensure a feasible techno-economic assessment. This paper deals with the techno-economic evaluation of a battery system integrated into a residential grid-connected PV system considering two battery models with and without battery degradation. The battery life cycle cost, the self-sufficiency ratio and battery lifetime are analyzed for techno-economic assessment of a residential grid-connected hybrid PV-battery system. The results show that the simulation without battery degradation gives 31.43% lower life cycle cost and 7.4% higher self-sufficiency ratio, compared to the modeling with battery degradation. This proves the importance of battery aging model for assessing a battery integrated into a renewable PV system.

Place, publisher, year, edition, pages
Scanditale AB, 2021
National Category
Energy Systems
Research subject
Energy- and Environmental Engineering
Identifiers
urn:nbn:se:mdh:diva-64711 (URN)10.46855/energy-proceedings-8244 (DOI)2-s2.0-85190414905 (Scopus ID)
Conference
Applied Energy Symposium 2021: Low carbon cities and urban energy systems (CUE2023) September 4-8, 2021, Matsue, Japan
Available from: 2023-11-10 Created: 2023-11-10 Last updated: 2024-12-19Bibliographically approved

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Shabani, Masoume

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