Economic Viability of Second-Life Electric Vehicle Batteries for Energy Storage in Private Households
Abstract: We examine the economic viability of second-life batteries from electric vehicles for load shifting and peak shaving in residential applications. We further investigate the expected impact of a growing number of residential storage systems on the electricity market. For the analysis a simulation model of a private household with integrated PV-storage system is used that is parametrized for an electricity demand of three people and a location in southern Germany. The conditions for which investments in second use batteries are profitable are examined for three scenarios. The central scenario S2 tackles an expected net increase in the electricity price by 4% per year. Upward and downward deviations from this price trajectory are covered by scenarios S1 and S3. For scenario S1, we find that investments in storage systems are profitable for all Li-ion battery costs assumed. In scenario S2, the breakeven battery price is found to be 107 € kWh-1 , whereas in scenario S3 with the lowest electricity price growth the battery price has to be equal or lower than 73 € kWh-1 to maintain economic viability.
Summary (2 min read)
- Renewable energy technologies are a promising way to mitigate the consequences of climate change and the finiteness of fossil fuels.
- Energy storage technologies can help to match supply and demand.
- The discussion shows the relevance of using batteries as energy storage systems, and the importance of taking a closer look at the requirements for a successful implementation, the consequences, and the resulting implications.
- Finally, there is the question concerning which implications and guidance can be derived from the results for energy companies, grid operators, car manufactures, and policy makers.
- Furthermore, a large share of the German PV market consists of residential small-scale systems which could profit from a storage system .
2.2.1 Technological parameters
- The technological input parameters can be grouped into the parameters concerning the elec- tricity generation, the electric load and the electricity storage.
- The data consists of the global solar irradiation and the diffuse solar irradiation.
- This will be discussed later in subsection 2.3.1.
- Figure 4 shows the electric load profiles for the different days in the transitional period.
- It is apparent that for weekdays and Saturdays the energy demand in the evening hours is higher than over the rest of the day.
2.2.2 Economic parameters
- The economic input parameters can be divided into general assumptions and the parameters concerning the electricity generation, the electricity market and the electricity storage.
- For defining electricity price scenarios the retail price of the period from 2008 to 2015 is regarded.
- The question which components and which level of detail are necessary to be modeled can only be answered considering the specific research issue.
- If the electricity demand excels the generated electricity the difference can be provided by the grid or the battery storage if the SOC (state of charge) is above the lower limit.
2.3.1 Power generation
- The input parameters of the model are the in-plane irradiance G and the module temperature Tmod.
- In order to project the solar irradiation onto the plane of the PV module the actual position of the sun has to be known.
- For the location of Stuttgart, 12 a tilt of 30° and a southward orientation has been chosen.
- Depending on the installed capacity, the annual power generation is about 980 kWh/kWp for an average year.
2.3.2 Energy storage
- There are many individual effects and mechanisms that, in combination, lead to aging of the battery pack.
- The power loss in the battery causes a heat input and thereby an increase of the temperature according to the heat capacity of the battery pack.
- Figure 8 shows the relations between the different parameters/quantities involved.
- Enabling to compare the model’s behavior and results with those from other studies.the authors.
- In this section the viability of investments in second-life batteries is discussed and the profitability evaluated.
- The NPV is calculated for a time period of 10 years and results in values between €-326 and €825, depending on the chosen scenario and battery price.
- The sensitivity analysis illustrates how the NPV changes when varying the given parameters.
- This is not crucial though because the feed-in tariff is fixed for the duration of the investment.
- The presented results have shown that investments in second-use battery storage systems are profitable for the homeowner under certain circumstances.
- For the rational homeowner, the strategy should be to maximize profit and to maximize the self-consumption rate.
- The battery cannot fulfill its role of peak-shaving.
- Establishing a market for second-use batteries could lower the battery costs and raise the market share of electric vehicles, although Neubauer et al.  found that battery second-use is unlikely to have a notable impact on today's battery prices .
- When traction batteries of electric or hybrid electric vehicles reach a capacity of 80% or lower they are often considered to have reached their end-of-life because of the limited range.
- The authors evaluate conditions under which investments in repurposed battery storage systems will become economically viable.
- Upward and downward deviations from scenario S2 are covered by scenario S1 and scenario S3.
- For the electricity sector the operating strategy of the integrated PV-storage system is a crucial part.
- Only with grid-optimized operating strategies positive effects on the electricity grid are achievable.
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"Economic Viability of Second-Life E..." refers background in this paper
...Furthermore, the peak in energy generation around noon produces a mismatch in demand and supply and is a threat to the stability of the electricity system ....
"Economic Viability of Second-Life E..." refers background or methods in this paper
...Similar approaches are used in  and  for new battery packs....
...Renewable energy technologies will play a significant role in mitigating the consequences of these challenges ....
...In order to be economically as well as technically efficient this system topology is the most widely used in the literature for residential applications ....
"Economic Viability of Second-Life E..." refers background in this paper
... is chosen to predict the loss of capacity and the increase of the inner resistance leading to a decrease of the efficiency....
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Frequently Asked Questions (2)
Q1. What contributions have the authors mentioned in the paper "Economic viability of second-life electric vehicle batteries for energy storage in private households" ?
The authors examine the economic viability of second-life batteries from electric vehicles for load shifting and peak shaving in residential applications. The authors further investigate the expected impact of a growing number of residential storage systems on the electricity market. The conditions for which investments in second use batteries are profitable are examined for three scenarios.
Q2. What have the authors stated for future works in "Economic viability of second-life electric vehicle batteries for energy storage in private households" ?
Finally, it should be noticed that the simulation model developed in their study is flexible regarding the input parameters and can be parameterized to examine a number of further research questions.