Lifetime Degradation Cost Analysis for Li-Ion Batteries in Capacity Markets using Accurate Physics-Based Models

Abstract

Capacity markets (CM) are energy markets created to ensure energy supply security. Energy storage devices provide services in the CMs. Li-ion batteries are a popular type of energy storage device used in CMs. The battery lifetime is a key factor in determining the economic viability of Li-ion batteries, and current approaches for estimating this are limited. This paper explores the potential of a lithium-ion battery to provide CM services with four de-rating factors (0.5 h, 1 h, 2 h, and 4 h). During the CM contract, the battery experiences both calendar and cycle degradation, which reduces the overall profit. Physics-based battery and degradation models are used to quantify the degradation costs for batteries in the CM to enhance the previous research results. The degradation model quantifies capacity losses related to the solid–electrolyte interphase (SEI) layer, active material loss, and SEI crack growth. The results show that the physics-based degradation model can accurately predict degradation costs under different operating conditions, and thus can substantiate the business case for the batteries in the CM. The simulated CM profits can be increased by 60% and 75% at 5 °C and 25 °C, respectively, compared to empirical and semiempirical degradation models. A sensitivity analysis for a range of parameters is performed to show the effects on the batteries’ overall profit margins.

Analysis of Lithium-ion Battery Cells Degradation Based on Different Manufacturers

“…The battery degradation results have three potential implications. First, the results serve as a benchmark for battery techno-economic studies by improving battery degradation [18]. Second, the results present an opportunity for an accurate LiB degradation modelling based on longterm data and different chemistries (LFP and NMC).…”

Energy Storage Investment and Operation in Efficient Electric Power Systems

“…In more general models (like the simulation model used to generate the results in 10 If for technological reasons P A = P D = P for some technology, then if some facilities using that technology are charging and others are simultaneously discharging, total charging plus total discharging cannot exceed P. Since, as discussed below, simultaneous charge and discharge for the same technology can occur only in very special cases, this constraint is not explicitly imposed here. 11 The degradation of Lithium-ion batteries with both time and usage has been much studied; see Gailani et al (2020) for a recent contribution and references to that literature.…”

“…11. The degradation of Lithium-ion batteries with both time and usage has been much studied; see Gailani et al (2020) for a recent contribution and references to that literature. Implications for scheduling generators have been explored by Duggal and Venkatesh (2015).…”

A Review of Lithium-Ion Battery Models in Techno-economic Analyses of Power Systems

“…The single particle model can be improved by adding description of the lithiumion transport in electrolyte as in [75] to derive the optimal charging protocol or as in [76] for assessing revenue in the capacity market under given operation schedule.…”