IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v279y2023ics0360544223015141.html
   My bibliography  Save this article

Battery valuation and management for battery swapping station

Author

Listed:
  • Chen, Xinjiang
  • Yang, Yu
  • Wang, Jianxiao
  • Song, Jie
  • He, Guannan

Abstract

Battery swapping station (BSS), a business model of battery energy storage (BES), has great potential in future integrated low-carbon energy and transportation systems. However, frequent battery swapping will inevitably accelerate battery degradation and shorten the battery life accordingly. To model the tradeoff of BSS use between energy and transportation applications, we develop a life-cycle decision model that coordinates battery charging and swapping in which the sensitivity of demand to price for battery swapping is considered and the optimal marginal degradation cost (MDC) of BSS is determined to maximize the BSS benefit across time and application. The proposed model is applied to manage a BSS that simultaneously provides battery swapping services to electric vehicle customers and provides flexibility service to the power grid, including energy arbitrage and reserve. The case study shows that while the end of the battery physical life occurs faster with battery swapping, the economic life becomes considerably longer. The results also reveal that the optimal MDC depends on the battery values in each application, and we analyze how the battery swapping price affects the optimal MDC and battery life. The proposed model can also provide decision support for on-demand BSS service, such as battery trading and renting.

Suggested Citation

  • Chen, Xinjiang & Yang, Yu & Wang, Jianxiao & Song, Jie & He, Guannan, 2023. "Battery valuation and management for battery swapping station," Energy, Elsevier, vol. 279(C).
    • Handle: RePEc:eee:energy:v:279:y:2023:i:c:s0360544223015141
    DOI: 10.1016/j.energy.2023.128120
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223015141
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.128120?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Amiri, Saeed Salimi & Jadid, Shahram & Saboori, Hedayat, 2018. "Multi-objective optimum charging management of electric vehicles through battery swapping stations," Energy, Elsevier, vol. 165(PB), pages 549-562.
    2. William A. Braff & Joshua M. Mueller & Jessika E. Trancik, 2016. "Value of storage technologies for wind and solar energy," Nature Climate Change, Nature, vol. 6(10), pages 964-969, October.
    3. Zhang, Junxia & Li, Xingmei & Jia, Dongqing & Zhou, Yuexin, 2023. "A Bi-level programming for union battery swapping stations location-routing problem under joint distribution and cost allocation," Energy, Elsevier, vol. 272(C).
    4. Robert L. Fares & Michael E. Webber, 2017. "The impacts of storing solar energy in the home to reduce reliance on the utility," Nature Energy, Nature, vol. 2(2), pages 1-10, February.
    5. Guannan He & Qixin Chen & Panayiotis Moutis & Soummya Kar & Jay F. Whitacre, 2018. "An intertemporal decision framework for electrochemical energy storage management," Nature Energy, Nature, vol. 3(5), pages 404-412, May.
    6. Yang, Jie & Liu, Wei & Ma, Kai & Yue, Zhiyuan & Zhu, Anhu & Guo, Shiliang, 2023. "An optimal battery allocation model for battery swapping station of electric vehicles," Energy, Elsevier, vol. 272(C).
    7. Liu, Jia & Yang, Hongxing & Zhou, Yuekuan, 2021. "Peer-to-peer trading optimizations on net-zero energy communities with energy storage of hydrogen and battery vehicles," Applied Energy, Elsevier, vol. 302(C).
    8. Nguyen, Su & Peng, Wei & Sokolowski, Peter & Alahakoon, Damminda & Yu, Xinghuo, 2018. "Optimizing rooftop photovoltaic distributed generation with battery storage for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 228(C), pages 2567-2580.
    9. Wei, Xinxing & Ban, Shengnan & Shi, Xilin & Li, Peng & Li, Yinping & Zhu, Shijie & Yang, Kun & Bai, Weizheng & Yang, Chunhe, 2023. "Carbon and energy storage in salt caverns under the background of carbon neutralization in China," Energy, Elsevier, vol. 272(C).
    10. Noah Kittner & Felix Lill & Daniel M. Kammen, 2017. "Energy storage deployment and innovation for the clean energy transition," Nature Energy, Nature, vol. 2(9), pages 1-6, September.
    11. Yang, Duo & Wang, Yujie & Pan, Rui & Chen, Ruiyang & Chen, Zonghai, 2018. "State-of-health estimation for the lithium-ion battery based on support vector regression," Applied Energy, Elsevier, vol. 227(C), pages 273-283.
    12. Dreyfuss, Michael & Giat, Yahel, 2017. "Optimal spares allocation to an exchangeable-item repair system with tolerable wait," European Journal of Operational Research, Elsevier, vol. 261(2), pages 584-594.
    13. Alaywan, Ziad, 2000. "Evolution of the California Independent System Operator Markets," The Electricity Journal, Elsevier, vol. 13(6), pages 69-83, July.
    14. 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).
    15. Wang, Sen & Li, Fengting & Zhang, Gaohang & Yin, Chunya, 2023. "Analysis of energy storage demand for peak shaving and frequency regulation of power systems with high penetration of renewable energy," Energy, Elsevier, vol. 267(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. Müller, Simon C. & Welpe, Isabell M., 2018. "Sharing electricity storage at the community level: An empirical analysis of potential business models and barriers," Energy Policy, Elsevier, vol. 118(C), pages 492-503.
    3. Gorman, Will & Montañés, Cristina Crespo & Mills, Andrew & Kim, James Hyungkwan & Millstein, Dev & Wiser, Ryan, 2022. "Are coupled renewable-battery power plants more valuable than independently sited installations?," Energy Economics, Elsevier, vol. 107(C).
    4. O'Shaughnessy, Eric & Cutler, Dylan & Ardani, Kristen & Margolis, Robert, 2018. "Solar plus: A review of the end-user economics of solar PV integration with storage and load control in residential buildings," Applied Energy, Elsevier, vol. 228(C), pages 2165-2175.
    5. Qin, Chao (Chris) & Loth, Eric, 2021. "Isothermal compressed wind energy storage using abandoned oil/gas wells or coal mines," Applied Energy, Elsevier, vol. 292(C).
    6. Dan Tong & David J. Farnham & Lei Duan & Qiang Zhang & Nathan S. Lewis & Ken Caldeira & Steven J. Davis, 2021. "Geophysical constraints on the reliability of solar and wind power worldwide," Nature Communications, Nature, vol. 12(1), pages 1-12, December.
    7. Bistline, John E.T. & Young, David T., 2020. "Emissions impacts of future battery storage deployment on regional power systems," Applied Energy, Elsevier, vol. 264(C).
    8. Meng, Jinhao & Cai, Lei & Stroe, Daniel-Ioan & Ma, Junpeng & Luo, Guangzhao & Teodorescu, Remus, 2020. "An optimized ensemble learning framework for lithium-ion Battery State of Health estimation in energy storage system," Energy, Elsevier, vol. 206(C).
    9. Xu, Jiuping & Liu, Tingting, 2020. "Technological paradigm-based approaches towards challenges and policy shifts for sustainable wind energy development," Energy Policy, Elsevier, vol. 142(C).
    10. Adewole, Ayooluwa & Shipworth, Michelle & Lemaire, Xavier & Sanderson, Danielle, 2023. "Peer-to-Peer energy trading, independence aspirations and financial benefits among Nigerian households," Energy Policy, Elsevier, vol. 174(C).
    11. Zhang, Wen-Yi & Chen, Yue & Wang, Yi & Xu, Yunjian, 2023. "Equilibrium analysis of a peer-to-peer energy trading market with shared energy storage in a power transmission grid," Energy, Elsevier, vol. 274(C).
    12. Barbour, Edward & González, Marta C., 2018. "Projecting battery adoption in the prosumer era," Applied Energy, Elsevier, vol. 215(C), pages 356-370.
    13. Vykhodtsev, Anton V. & Jang, Darren & Wang, Qianpu & Rosehart, William & Zareipour, Hamidreza, 2022. "A review of modelling approaches to characterize lithium-ion battery energy storage systems in techno-economic analyses of power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    14. Zheng, Boshen & Wei, Wei & Chen, Yue & Wu, Qiuwei & Mei, Shengwei, 2022. "A peer-to-peer energy trading market embedded with residential shared energy storage units," Applied Energy, Elsevier, vol. 308(C).
    15. 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).
    16. Alexandra von Meier & Elizabeth L. Ratnam & Kyle Brady & Keith Moffat & Jaimie Swartz, 2020. "Phasor-Based Control for Scalable Integration of Variable Energy Resources," Energies, MDPI, vol. 13(1), pages 1-14, January.
    17. Gorman, Will & Jarvis, Stephen & Callaway, Duncan, 2020. "Should I Stay Or Should I Go? The importance of electricity rate design for household defection from the power grid," Applied Energy, Elsevier, vol. 262(C).
    18. Dimitar Bozalakov & Mohannad J. Mnati & Joannes Laveyne & Jan Desmet & Lieven Vandevelde, 2019. "Battery Storage Integration in Voltage Unbalance and Overvoltage Mitigation Control Strategies and Its Impact on the Power Quality," Energies, MDPI, vol. 12(8), pages 1-26, April.
    19. Oyewo, Ayobami Solomon & Solomon, A.A. & Bogdanov, Dmitrii & Aghahosseini, Arman & Mensah, Theophilus Nii Odai & Ram, Manish & Breyer, Christian, 2021. "Just transition towards defossilised energy systems for developing economies: A case study of Ethiopia," Renewable Energy, Elsevier, vol. 176(C), pages 346-365.
    20. Carsten Helm & Mathias Mier, 2020. "Steering the Energy Transition in a World of Intermittent Electricity Supply: Optimal Subsidies and Taxes for Renewables Storage," ifo Working Paper Series 330, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:279:y:2023:i:c:s0360544223015141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.