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Economy analysis of second-life battery in wind power systems considering battery degradation in dynamic processes: Real case scenarios

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  • Song, Ziyou
  • Feng, Shuo
  • Zhang, Lei
  • Hu, Zunyan
  • Hu, Xiaosong
  • Yao, Rui

Abstract

Energy storage system plays an important role in modern power systems for mitigating the variation and intermittency of renewable energy sources. The Lithium-ion battery is currently the most widely used solution for energy storage system. However, its high cost is considered as one of the major barriers hampering the integration of renewable energy and the adoption of electric vehicles. Reusing electric vehicle batteries seems a promising solution to the aforementioned problem. Based on a dynamic degradation model of Lithium-ion batteries, this paper first compares the profits that second-life and fresh batteries can bring to the wind farm. Model predictive control is adopted to solve an hourly optimal wind scheduling problem and maximize the profit of wind farm owner. The optimal size of battery is determined and then the comparison of second-life and fresh batteries is conducted taking the battery degradation, the profit of the wind farm owner, and various remaining capacities of battery into account. Two case studies in USA and Denmark are conducted and the analysis shows that given the current prices of wind energy and Lithium-ion batteries, reusing batteries is not worthwhile for the studied wind farms, but it may outperform fresh batteries in the future if the wind energy price decreases much faster than the battery price.

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  • Song, Ziyou & Feng, Shuo & Zhang, Lei & Hu, Zunyan & Hu, Xiaosong & Yao, Rui, 2019. "Economy analysis of second-life battery in wind power systems considering battery degradation in dynamic processes: Real case scenarios," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    • Handle: RePEc:eee:appene:v:251:y:2019:i:c:36
    DOI: 10.1016/j.apenergy.2019.113411
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    1. Steckel, Tobiah & Kendall, Alissa & Ambrose, Hanjiro, 2021. "Applying levelized cost of storage methodology to utility-scale second-life lithium-ion battery energy storage systems," Applied Energy, Elsevier, vol. 300(C).
    2. Merlin Frank & Daniel Serafin Holz & Domenic Klohs & Christian Offermanns & Heiner Hans Heimes & Achim Kampker, 2024. "Identification and Mitigation of Predominant Challenges in the Utilization of Aged Traction Batteries within Stationary Second-Life Scenarios," Energies, MDPI, vol. 17(5), pages 1-17, February.
    3. Wang, Shuoqi & Guo, Dongxu & Han, Xuebing & Lu, Languang & Sun, Kai & Li, Weihan & Sauer, Dirk Uwe & Ouyang, Minggao, 2020. "Impact of battery degradation models on energy management of a grid-connected DC microgrid," Energy, Elsevier, vol. 207(C).
    4. Wang, Lei & Wang, Xiang & Yang, Wenxian, 2020. "Optimal design of electric vehicle battery recycling network – From the perspective of electric vehicle manufacturers," Applied Energy, Elsevier, vol. 275(C).
    5. He, Guannan & Ciez, Rebecca & Moutis, Panayiotis & Kar, Soummya & Whitacre, Jay F., 2020. "The economic end of life of electrochemical energy storage," Applied Energy, Elsevier, vol. 273(C).
    6. Emanuele Michelini & Patrick Höschele & Florian Ratz & Michael Stadlbauer & Werner Rom & Christian Ellersdorfer & Jörg Moser, 2023. "Potential and Most Promising Second-Life Applications for Automotive Lithium-Ion Batteries Considering Technical, Economic and Legal Aspects," Energies, MDPI, vol. 16(6), pages 1-21, March.
    7. Al-Wreikat, Yazan & Attfield, Emily Kate & Sodré, José Ricardo, 2022. "Model for payback time of using retired electric vehicle batteries in residential energy storage systems," Energy, Elsevier, vol. 259(C).
    8. Zongwei Liu & Xinglong Liu & Han Hao & Fuquan Zhao & Amer Ahmad Amer & Hassan Babiker, 2020. "Research on the Critical Issues for Power Battery Reusing of New Energy Vehicles in China," Energies, MDPI, vol. 13(8), pages 1-19, April.
    9. Zhang, Youlang & Li, Yan & Tao, Yibin & Ye, Jilei & Pan, Aiqiang & Li, Xinzhou & Liao, Qiangqiang & Wang, Zhiqin, 2020. "Performance assessment of retired EV battery modules for echelon use," Energy, Elsevier, vol. 193(C).
    10. Steckel, Tobiah & Kendall, Alissa & Ambrose, Hanjiro, 2021. "Applying levelized cost of storage methodology to utility-scale second-life lithium-ion battery energy storage systems," Institute of Transportation Studies, Working Paper Series qt2ws2c6jw, Institute of Transportation Studies, UC Davis.
    11. Hong Eun Moon & Yoon Hee Ha & Kyung Nam Kim, 2022. "Comparative Economic Analysis of Solar PV and Reused EV Batteries in the Residential Sector of Three Emerging Countries—The Philippines, Indonesia, and Vietnam," Energies, MDPI, vol. 16(1), pages 1-26, December.
    12. Braco, Elisa & San Martín, Idoia & Sanchis, Pablo & Ursúa, Alfredo & Stroe, Daniel-Ioan, 2022. "State of health estimation of second-life lithium-ion batteries under real profile operation," Applied Energy, Elsevier, vol. 326(C).
    13. Gianpiero Colangelo & Gianluigi Spirto & Marco Milanese & Arturo de Risi, 2021. "Progresses in Analytical Design of Distribution Grids and Energy Storage," Energies, MDPI, vol. 14(14), pages 1-43, July.
    14. Loukatou, Angeliki & Johnson, Paul & Howell, Sydney & Duck, Peter, 2021. "Optimal valuation of wind energy projects co-located with battery storage," Applied Energy, Elsevier, vol. 283(C).
    15. Wu, Wei & Lin, Boqiang & Xie, Chunping & Elliott, Robert J.R. & Radcliffe, Jonathan, 2020. "Does energy storage provide a profitable second life for electric vehicle batteries?," Energy Economics, Elsevier, vol. 92(C).
    16. Mathews, Ian & Xu, Bolun & He, Wei & Barreto, Vanessa & Buonassisi, Tonio & Peters, Ian Marius, 2020. "Technoeconomic model of second-life batteries for utility-scale solar considering calendar and cycle aging," Applied Energy, Elsevier, vol. 269(C).
    17. Song, Ziyou & Yang, Niankai & Lin, Xinfan & Pinto Delgado, Fanny & Hofmann, Heath & Sun, Jing, 2022. "Progression of cell-to-cell variation within battery modules under different cooling structures," Applied Energy, Elsevier, vol. 312(C).
    18. İskeceli, Bilge Dilara & Kayakutlu, Gulgun & Daim, Tugrul U. & Shaygan, Amir, 2020. "Optimization of battery and wind technologies: Case of power deviation penalties," Technology in Society, Elsevier, vol. 63(C).
    19. Deng, Xinchen & Wang, Feng & Lin, Xianke & Hu, Bing & Arash, Khalatbarisoltan & Hu, Xiaosong, 2022. "Distributed energy management of home-vehicle Nexus with Stationary battery energy storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    20. Gunawan, Tubagus Aryandi & Monaghan, Rory F.D., 2022. "Techno-econo-environmental comparisons of zero- and low-emission heavy-duty trucks," Applied Energy, Elsevier, vol. 308(C).
    21. Lai, Xin & Huang, Yunfeng & Deng, Cong & Gu, Huanghui & Han, Xuebing & Zheng, Yuejiu & Ouyang, Minggao, 2021. "Sorting, regrouping, and echelon utilization of the large-scale retired lithium batteries: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    22. Pranjal Barman & Lachit Dutta & Brian Azzopardi, 2023. "Electric Vehicle Battery Supply Chain and Critical Materials: A Brief Survey of State of the Art," Energies, MDPI, vol. 16(8), pages 1-23, April.
    23. Park, Chybyung & Jeong, Byongug & Zhou, Peilin & Jang, Hayoung & Kim, Seongwan & Jeon, Hyeonmin & Nam, Dong & Rashedi, Ahmad, 2022. "Live-Life cycle assessment of the electric propulsion ship using solar PV," Applied Energy, Elsevier, vol. 309(C).
    24. Horesh, Noah & Quinn, Casey & Wang, Hongjie & Zane, Regan & Ferry, Mike & Tong, Shijie & Quinn, Jason C., 2021. "Driving to the future of energy storage: Techno-economic analysis of a novel method to recondition second life electric vehicle batteries," Applied Energy, Elsevier, vol. 295(C).

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