IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v10y2017i12p2107-d122453.html
   My bibliography  Save this article

Lithium-Ion Battery Storage for the Grid—A Review of Stationary Battery Storage System Design Tailored for Applications in Modern Power Grids

Author

Listed:
  • Holger C. Hesse

    (Department of Electrical and Computer Engineering, Technical University of Munich (TUM), 80333 Munich, Germany)

  • Michael Schimpe

    (Department of Electrical and Computer Engineering, Technical University of Munich (TUM), 80333 Munich, Germany
    These authors contributed equally to this work.)

  • Daniel Kucevic

    (Department of Electrical and Computer Engineering, Technical University of Munich (TUM), 80333 Munich, Germany
    These authors contributed equally to this work.)

  • Andreas Jossen

    (Department of Electrical and Computer Engineering, Technical University of Munich (TUM), 80333 Munich, Germany)

Abstract

Battery energy storage systems have gained increasing interest for serving grid support in various application tasks. In particular, systems based on lithium-ion batteries have evolved rapidly with a wide range of cell technologies and system architectures available on the market. On the application side, different tasks for storage deployment demand distinct properties of the storage system. This review aims to serve as a guideline for best choice of battery technology, system design and operation for lithium-ion based storage systems to match a specific system application. Starting with an overview to lithium-ion battery technologies and their characteristics with respect to performance and aging, the storage system design is analyzed in detail based on an evaluation of real-world projects. Typical storage system applications are grouped and classified with respect to the challenges posed to the battery system. Publicly available modeling tools for technical and economic analysis are presented. A brief analysis of optimization approaches aims to point out challenges and potential solution techniques for system sizing, positioning and dispatch operation. For all areas reviewed herein, expected improvements and possible future developments are highlighted. In order to extract the full potential of stationary battery storage systems and to enable increased profitability of systems, future research should aim to a holistic system level approach combining not only performance tuning on a battery cell level and careful analysis of the application requirements, but also consider a proper selection of storage sub-components as well as an optimized system operation strategy.

Suggested Citation

  • Holger C. Hesse & Michael Schimpe & Daniel Kucevic & Andreas Jossen, 2017. "Lithium-Ion Battery Storage for the Grid—A Review of Stationary Battery Storage System Design Tailored for Applications in Modern Power Grids," Energies, MDPI, vol. 10(12), pages 1-42, December.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:12:p:2107-:d:122453
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/10/12/2107/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/10/12/2107/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. You, Gae-won & Park, Sangdo & Oh, Dukjin, 2016. "Real-time state-of-health estimation for electric vehicle batteries: A data-driven approach," Applied Energy, Elsevier, vol. 176(C), pages 92-103.
    2. Christoph Goebel & Vicky Cheng & Hans-Arno Jacobsen, 2017. "Profitability of Residential Battery Energy Storage Combined with Solar Photovoltaics," Energies, MDPI, vol. 10(7), pages 1-17, July.
    3. Tan, Kang Miao & Ramachandaramurthy, Vigna K. & Yong, Jia Ying, 2016. "Integration of electric vehicles in smart grid: A review on vehicle to grid technologies and optimization techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 720-732.
    4. Battke, Benedikt & Schmidt, Tobias S. & Grosspietsch, David & Hoffmann, Volker H., 2013. "A review and probabilistic model of lifecycle costs of stationary batteries in multiple applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 240-250.
    5. Markus Burger & Bernhard Klar & Alfred Muller & Gero Schindlmayr, 2004. "A spot market model for pricing derivatives in electricity markets," Quantitative Finance, Taylor & Francis Journals, vol. 4(1), pages 109-122.
    6. Fabio Massimo Gatta & Alberto Geri & Regina Lamedica & Stefano Lauria & Marco Maccioni & Francesco Palone & Massimo Rebolini & Alessandro Ruvio, 2016. "Application of a LiFePO 4 Battery Energy Storage System to Primary Frequency Control: Simulations and Experimental Results," Energies, MDPI, vol. 9(11), pages 1-16, October.
    7. Poudineh, Rahmatallah & Jamasb, Tooraj, 2014. "Distributed generation, storage, demand response and energy efficiency as alternatives to grid capacity enhancement," Energy Policy, Elsevier, vol. 67(C), pages 222-231.
    8. Ding, Huajie & Hu, Zechun & Song, Yonghua, 2015. "Value of the energy storage system in an electric bus fast charging station," Applied Energy, Elsevier, vol. 157(C), pages 630-639.
    9. Daniel Akinyele & Juri Belikov & Yoash Levron, 2017. "Battery Storage Technologies for Electrical Applications: Impact in Stand-Alone Photovoltaic Systems," Energies, MDPI, vol. 10(11), pages 1-39, November.
    10. Richardson, David B., 2013. "Electric vehicles and the electric grid: A review of modeling approaches, Impacts, and renewable energy integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 247-254.
    11. Schneider, Maximilian & Biel, K. & Pfaller, S. & Schaede, Hendrik & Rinderknecht, Stephan & Glock, C. H., 2016. "Using inventory models for sizing energy storage systems: An interdisciplinary approach," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 79484, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    12. Wang, Qi & Zhang, Chunyu & Ding, Yi & Xydis, George & Wang, Jianhui & Østergaard, Jacob, 2015. "Review of real-time electricity markets for integrating Distributed Energy Resources and Demand Response," Applied Energy, Elsevier, vol. 138(C), pages 695-706.
    13. Sani Hassan, Abubakar & Cipcigan, Liana & Jenkins, Nick, 2017. "Optimal battery storage operation for PV systems with tariff incentives," Applied Energy, Elsevier, vol. 203(C), pages 422-441.
    14. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2010. "A review of computer tools for analysing the integration of renewable energy into various energy systems," Applied Energy, Elsevier, vol. 87(4), pages 1059-1082, April.
    15. Beevers, D. & Branchini, L. & Orlandini, V. & De Pascale, A. & Perez-Blanco, H., 2015. "Pumped hydro storage plants with improved operational flexibility using constant speed Francis runners," Applied Energy, Elsevier, vol. 137(C), pages 629-637.
    16. Schimpe, Michael & Naumann, Maik & Truong, Nam & Hesse, Holger C. & Santhanagopalan, Shriram & Saxon, Aron & Jossen, Andreas, 2018. "Energy efficiency evaluation of a stationary lithium-ion battery container storage system via electro-thermal modeling and detailed component analysis," Applied Energy, Elsevier, vol. 210(C), pages 211-229.
    17. Connolly, D. & Lund, H. & Finn, P. & Mathiesen, B.V. & Leahy, M., 2011. "Practical operation strategies for pumped hydroelectric energy storage (PHES) utilising electricity price arbitrage," Energy Policy, Elsevier, vol. 39(7), pages 4189-4196, July.
    18. Howells, Mark & Rogner, Holger & Strachan, Neil & Heaps, Charles & Huntington, Hillard & Kypreos, Socrates & Hughes, Alison & Silveira, Semida & DeCarolis, Joe & Bazillian, Morgan & Roehrl, Alexander, 2011. "OSeMOSYS: The Open Source Energy Modeling System: An introduction to its ethos, structure and development," Energy Policy, Elsevier, vol. 39(10), pages 5850-5870, October.
    19. Eddahech, Akram & Briat, Olivier & Vinassa, Jean-Michel, 2015. "Performance comparison of four lithium–ion battery technologies under calendar aging," Energy, Elsevier, vol. 84(C), pages 542-550.
    20. Greenwood, D.M. & Lim, K.Y. & Patsios, C. & Lyons, P.F. & Lim, Y.S. & Taylor, P.C., 2017. "Frequency response services designed for energy storage," Applied Energy, Elsevier, vol. 203(C), pages 115-127.
    21. Holger C. Hesse & Rodrigo Martins & Petr Musilek & Maik Naumann & Cong Nam Truong & Andreas Jossen, 2017. "Economic Optimization of Component Sizing for Residential Battery Storage Systems," Energies, MDPI, vol. 10(7), pages 1-19, June.
    22. Ferreira, Helder Lopes & Garde, Raquel & Fulli, Gianluca & Kling, Wil & Lopes, Joao Pecas, 2013. "Characterisation of electrical energy storage technologies," Energy, Elsevier, vol. 53(C), pages 288-298.
    23. Dincer, Ibrahim, 2000. "Renewable energy and sustainable development: a crucial review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 4(2), pages 157-175, June.
    24. Dufo-López, Rodolfo & Bernal-Agustín, José L. & Yusta-Loyo, José M. & Domínguez-Navarro, José A. & Ramírez-Rosado, Ignacio J. & Lujano, Juan & Aso, Ismael, 2011. "Multi-objective optimization minimizing cost and life cycle emissions of stand-alone PV–wind–diesel systems with batteries storage," Applied Energy, Elsevier, vol. 88(11), pages 4033-4041.
    25. Weitzel, Timm & Glock, C. H., 2018. "Energy Management for Stationary Electric Energy Storage Systems: A Systematic Literature Review," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 88880, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    26. Aamir, Muhammad & Ahmed Kalwar, Kafeel & Mekhilef, Saad, 2016. "Review: Uninterruptible Power Supply (UPS) system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1395-1410.
    27. Merei, Ghada & Moshövel, Janina & Magnor, Dirk & Sauer, Dirk Uwe, 2016. "Optimization of self-consumption and techno-economic analysis of PV-battery systems in commercial applications," Applied Energy, Elsevier, vol. 168(C), pages 171-178.
    28. Björn Nykvist & Måns Nilsson, 2015. "Rapidly falling costs of battery packs for electric vehicles," Nature Climate Change, Nature, vol. 5(4), pages 329-332, April.
    29. Diouf, Boucar & Pode, Ramchandra, 2015. "Potential of lithium-ion batteries in renewable energy," Renewable Energy, Elsevier, vol. 76(C), pages 375-380.
    30. Bradbury, Kyle & Pratson, Lincoln & Patiño-Echeverri, Dalia, 2014. "Economic viability of energy storage systems based on price arbitrage potential in real-time U.S. electricity markets," Applied Energy, Elsevier, vol. 114(C), pages 512-519.
    31. Malhotra, Abhishek & Battke, Benedikt & Beuse, Martin & Stephan, Annegret & Schmidt, Tobias, 2016. "Use cases for stationary battery technologies: A review of the literature and existing projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 705-721.
    32. O. Schmidt & A. Hawkes & A. Gambhir & I. Staffell, 2017. "The future cost of electrical energy storage based on experience rates," Nature Energy, Nature, vol. 2(8), pages 1-8, August.
    33. Guille, Christophe & Gross, George, 2009. "A conceptual framework for the vehicle-to-grid (V2G) implementation," Energy Policy, Elsevier, vol. 37(11), pages 4379-4390, November.
    34. Parra, David & Norman, Stuart A. & Walker, Gavin S. & Gillott, Mark, 2016. "Optimum community energy storage system for demand load shifting," Applied Energy, Elsevier, vol. 174(C), pages 130-143.
    35. Weitzel, Timm & Glock, Christoph H., 2018. "Energy management for stationary electric energy storage systems: A systematic literature review," European Journal of Operational Research, Elsevier, vol. 264(2), pages 582-606.
    36. Branker, K. & Pathak, M.J.M. & Pearce, J.M., 2011. "A review of solar photovoltaic levelized cost of electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4470-4482.
    37. Rao, Zhonghao & Wang, Shuangfeng, 2011. "A review of power battery thermal energy management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4554-4571.
    38. Capasso, Clemente & Veneri, Ottorino, 2015. "Experimental study of a DC charging station for full electric and plug in hybrid vehicles," Applied Energy, Elsevier, vol. 152(C), pages 131-142.
    39. Hoppmann, Joern & Volland, Jonas & Schmidt, Tobias S. & Hoffmann, Volker H., 2014. "The economic viability of battery storage for residential solar photovoltaic systems – A review and a simulation model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 1101-1118.
    40. Moshövel, Janina & Kairies, Kai-Philipp & Magnor, Dirk & Leuthold, Matthias & Bost, Mark & Gährs, Swantje & Szczechowicz, Eva & Cramer, Moritz & Sauer, Dirk Uwe, 2015. "Analysis of the maximal possible grid relief from PV-peak-power impacts by using storage systems for increased self-consumption," Applied Energy, Elsevier, vol. 137(C), pages 567-575.
    41. El-Baz, Wessam & Tzscheutschler, Peter, 2015. "Short-term smart learning electrical load prediction algorithm for home energy management systems," Applied Energy, Elsevier, vol. 147(C), pages 10-19.
    42. Mwasilu, Francis & Justo, Jackson John & Kim, Eun-Kyung & Do, Ton Duc & Jung, Jin-Woo, 2014. "Electric vehicles and smart grid interaction: A review on vehicle to grid and renewable energy sources integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 501-516.
    43. Heymans, Catherine & Walker, Sean B. & Young, Steven B. & Fowler, Michael, 2014. "Economic analysis of second use electric vehicle batteries for residential energy storage and load-levelling," Energy Policy, Elsevier, vol. 71(C), pages 22-30.
    44. Sarasketa-Zabala, E. & Martinez-Laserna, E. & Berecibar, M. & Gandiaga, I. & Rodriguez-Martinez, L.M. & Villarreal, I., 2016. "Realistic lifetime prediction approach for Li-ion batteries," Applied Energy, Elsevier, vol. 162(C), pages 839-852.
    45. Luo, Xing & Wang, Jihong & Dooner, Mark & Clarke, Jonathan, 2015. "Overview of current development in electrical energy storage technologies and the application potential in power system operation," Applied Energy, Elsevier, vol. 137(C), pages 511-536.
    46. Burke, Andrew & Miller, Marshall, 2009. "Performance Characteristics of Lithium-ion Batteries of Various Chemistries for Plug-in Hybrid Vehicles," Institute of Transportation Studies, Working Paper Series qt3mc7g3vt, Institute of Transportation Studies, UC Davis.
    47. Chauhan, Anurag & Saini, R.P., 2014. "A review on Integrated Renewable Energy System based power generation for stand-alone applications: Configurations, storage options, sizing methodologies and control," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 99-120.
    48. Resch, Matthias & Bühler, Jochen & Klausen, Mira & Sumper, Andreas, 2017. "Impact of operation strategies of large scale battery systems on distribution grid planning in Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1042-1063.
    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. Schram, Wouter L. & Lampropoulos, Ioannis & van Sark, Wilfried G.J.H.M., 2018. "Photovoltaic systems coupled with batteries that are optimally sized for household self-consumption: Assessment of peak shaving potential," Applied Energy, Elsevier, vol. 223(C), pages 69-81.
    2. Wu, Wei & Lin, Boqiang, 2018. "Application value of energy storage in power grid: A special case of China electricity market," Energy, Elsevier, vol. 165(PB), pages 1191-1199.
    3. Edison Banguero & Antonio Correcher & Ángel Pérez-Navarro & Francisco Morant & Andrés Aristizabal, 2018. "A Review on Battery Charging and Discharging Control Strategies: Application to Renewable Energy Systems," Energies, MDPI, vol. 11(4), pages 1-15, April.
    4. Andreolli, Francesca & D’Alpaos, Chiara & Moretto, Michele, 2022. "Valuing investments in domestic PV-Battery Systems under uncertainty," Energy Economics, Elsevier, vol. 106(C).
    5. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi, 2017. "The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy," Energies, MDPI, vol. 10(9), pages 1-18, September.
    6. Kalkbrenner, Bernhard J., 2019. "Residential vs. community battery storage systems – Consumer preferences in Germany," Energy Policy, Elsevier, vol. 129(C), pages 1355-1363.
    7. Stefan Englberger & Holger Hesse & Daniel Kucevic & Andreas Jossen, 2019. "A Techno-Economic Analysis of Vehicle-to-Building: Battery Degradation and Efficiency Analysis in the Context of Coordinated Electric Vehicle Charging," Energies, MDPI, vol. 12(5), pages 1-17, March.
    8. Paulo Rotella Junior & Luiz Célio Souza Rocha & Sandra Naomi Morioka & Ivan Bolis & Gianfranco Chicco & Andrea Mazza & Karel Janda, 2021. "Economic Analysis of the Investments in Battery Energy Storage Systems: Review and Current Perspectives," Energies, MDPI, vol. 14(9), pages 1-29, April.
    9. Beuse, Martin & Dirksmeier, Mathias & Steffen, Bjarne & Schmidt, Tobias S., 2020. "Profitability of commercial and industrial photovoltaics and battery projects in South-East-Asia," Applied Energy, Elsevier, vol. 271(C).
    10. Paterakis, Nikolaos G. & Erdinç, Ozan & Catalão, João P.S., 2017. "An overview of Demand Response: Key-elements and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 871-891.
    11. Resch, Matthias & Bühler, Jochen & Klausen, Mira & Sumper, Andreas, 2017. "Impact of operation strategies of large scale battery systems on distribution grid planning in Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1042-1063.
    12. Tervo, Eric & Agbim, Kenechi & DeAngelis, Freddy & Hernandez, Jeffrey & Kim, Hye Kyung & Odukomaiya, Adewale, 2018. "An economic analysis of residential photovoltaic systems with lithium ion battery storage in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 1057-1066.
    13. Englberger, Stefan & Abo Gamra, Kareem & Tepe, Benedikt & Schreiber, Michael & Jossen, Andreas & Hesse, Holger, 2021. "Electric vehicle multi-use: Optimizing multiple value streams using mobile storage systems in a vehicle-to-grid context," Applied Energy, Elsevier, vol. 304(C).
    14. Lucas Deotti & Wanessa Guedes & Bruno Dias & Tiago Soares, 2020. "Technical and Economic Analysis of Battery Storage for Residential Solar Photovoltaic Systems in the Brazilian Regulatory Context," Energies, MDPI, vol. 13(24), pages 1-30, December.
    15. Antweiler, Werner, 2021. "Microeconomic models of electricity storage: Price Forecasting, arbitrage limits, curtailment insurance, and transmission line utilization," Energy Economics, Elsevier, vol. 101(C).
    16. Jean-Michel Clairand & Paulo Guerra-Terán & Xavier Serrano-Guerrero & Mario González-Rodríguez & Guillermo Escrivá-Escrivá, 2019. "Electric Vehicles for Public Transportation in Power Systems: A Review of Methodologies," Energies, MDPI, vol. 12(16), pages 1-22, August.
    17. Beatrice Marchi & Simone Zanoni & Marco Pasetti, 2019. "Multi-Period Newsvendor Problem for the Management of Battery Energy Storage Systems in Support of Distributed Generation," Energies, MDPI, vol. 12(23), pages 1-13, December.
    18. Han, Xuejiao & Garrison, Jared & Hug, Gabriela, 2022. "Techno-economic analysis of PV-battery systems in Switzerland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    19. Barbour, Edward & González, Marta C., 2018. "Projecting battery adoption in the prosumer era," Applied Energy, Elsevier, vol. 215(C), pages 356-370.
    20. Rodrigo Martins & Holger C. Hesse & Johanna Jungbauer & Thomas Vorbuchner & Petr Musilek, 2018. "Optimal Component Sizing for Peak Shaving in Battery Energy Storage System for Industrial Applications," Energies, MDPI, vol. 11(8), pages 1-22, August.

    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:gam:jeners:v:10:y:2017:i:12:p:2107-:d:122453. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.