Techno-Economic Evaluation of Energy Storage Systems Built from EV Batteries – Prospective Revenues in Different Stationary Applications

Abstract

Battery energy storage systems (BESSs) are already being deployed for several stationary applications in a technically and economically feasible way. This paper focuses on the revenues of industrial BESSs built from electric vehicle lithiumion batteries with varying states of health. For this analysis, a stationary BESS simulation model is used, that is parameterised with parameters of a 22-kWh automotive battery. The comprehensive model consists of several detailed sub-models, considering battery characteristics, ageing and operating strategies, which allow technical assessment through time series simulation. Therefore, capacity fade and energy losses are considered in this techno-economic evaluation. Potential economically feasible applications of new and second-life batteries, such as photovoltaic home storage, intraday trading and frequency regulation as well as their combined operation are compared. The investigation includes different electricity price scenarios. The combined operation, followed by frequency regulation, is found to have the highest economic viability for the specified electric vehicle battery.

A survey of second-life batteries based on techno-economic perspective and applications-based analysis

“…The majority of the literature on battery ageing in second-life applications focuses on firstuse in EVs [7, 32, 37, 49, 50, 56, 57, 61-63, 65, 66, 68-70, 74, 78], which is why it is still a relatively new issue. Only a small number of studies [36,61,80,81,89,95,96] have specifically looked at battery ageing during primary and secondary usage, also, almost all of these studies employ the same ageing models created for first-use. The ability to accurately conduct battery health estimation during second-life applications, which is essential for extending the battery's usable life, is currently lacking.…”

“…It is recommended that researchers and stakeholders conduct cost analysis of battery screening, refurbishment, and repurposing for specific applications. There have been various techno-economic tools reported in the literature, such as Return on Investment [62,66,96], Return Rate on annual basis [89], Levelized Cost of Energy [36,91] and Levelized annual Cost of Energy using Net Present Value [93,95], Benefit-cost Ratio [61], and cost-optimization algorithms [77,80,94] for economic analysis, but these are based on several assumptions and are applicable only for specific battery compositions and controlled gridconnected applications [61,66,80,90]. These economic studies have mostly confirmed the cost benefits of second-life batteries over new batteries in terms of decrease in LCOE [91,93], increased annual revenue [36,61,70,92] and operating as well as payback years [89,90,92] but it should be noted that these results cannot be generalized.…”

“…These economic studies have mostly confirmed the cost benefits of second-life batteries over new batteries in terms of decrease in LCOE [91,93], increased annual revenue [36,61,70,92] and operating as well as payback years [89,90,92] but it should be noted that these results cannot be generalized. There are many uncertainties like unpredictable battery prices [92,96] and application based benefits and controlled conditions [61,69,89,90,93]. It is recommended to take into account future battery and energy prices inflation for more reliable results.…”

“…It is suggested that the battery continues to generate revenue for both lives and the vehicle owner can decide about the amount of cost saving by starting the battery's second life and also selling the electricity in addition to the battery's second-life use. A techno-economic evaluation using software called SimSES in [96] investigates the revenues generated by deploying second-life batteries of varying capacities under different applications. This model looks quite detailed taking into account battery characteristics, ageing and operating conditions.…”