The impact of battery operating management strategies on life cycle cost assessment in real power market for a grid-connected residential battery application

Abstract

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.