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Technoeconomic model of second-life batteries for utility-scale solar considering calendar and cycle aging

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  • Mathews, Ian
  • Xu, Bolun
  • He, Wei
  • Barreto, Vanessa
  • Buonassisi, Tonio
  • Peters, Ian Marius

Abstract

The rapid proliferation of electric vehicles is creating a fleet of millions of lithium-ion batteries that will be deemed unsuitable for the transportation industry once they reach 80% of their original capacity. The repurposing and deployment of these batteries as stationary energy storage provides an opportunity to reduce the cost of solar-plus-storage systems, if the economics can be proven. We present a techno-economic model of a solar-plus-second-life energy storage project in California, including a data-based model of lithium nickel manganese cobalt oxide battery degradation, to predict its capacity fade over time, and compare it to a project that uses a new lithium-ion battery. By setting certain control policy limits, to minimize cycle aging, we show that a system with state-of-charge limits in a 65–15% range, extends the project life to over 16 years, assuming a battery reaches its end-of-life at 60% of its original capacity. Under these conditions, a second-life project is more economically favorable than a project that uses a new battery and 85–20% state-of-charge limits, for second-life battery costs that are <80% of the new battery. The same system reaches break-even and profitability for second-life battery costs that are <60% of the new battery. Our model shows that using current benchmarked data for the capital and operations and maintenance costs of solar-plus-storage systems, and a semi-empirical data-based degradation model, it is possible for electric vehicle manufacturers to sell second-life batteries for <60% of their original price to developers of profitable solar-plus-storage projects.

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  • 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).
    • Handle: RePEc:eee:appene:v:269:y:2020:i:c:s0306261920306395
    DOI: 10.1016/j.apenergy.2020.115127
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    7. 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).
    8. Mathieu, Romain & Briat, Olivier & Gyan, Philippe & Vinassa, Jean-Michel, 2021. "Comparison of the impact of fast charging on the cycle life of three lithium-ion cells under several parameters of charge protocol and temperatures," Applied Energy, Elsevier, vol. 283(C).
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    10. Farhad Salek & Aydin Azizi & Shahaboddin Resalati & Paul Henshall & Denise Morrey, 2022. "Mathematical Modelling and Simulation of Second Life Battery Pack with Heterogeneous State of Health," Mathematics, MDPI, vol. 10(20), pages 1-23, October.
    11. Sai Vinayak Ganesh & Matilde D’Arpino, 2023. "Critical Comparison of Li-Ion Aging Models for Second Life Battery Applications," Energies, MDPI, vol. 16(7), pages 1-23, March.
    12. Lukáš Janota & Tomáš Králík & Jaroslav Knápek, 2020. "Second Life Batteries Used in Energy Storage for Frequency Containment Reserve Service," Energies, MDPI, vol. 13(23), pages 1-36, December.
    13. Shahjalal, Mohammad & Roy, Probir Kumar & Shams, Tamanna & Fly, Ashley & Chowdhury, Jahedul Islam & Ahmed, Md. Rishad & Liu, Kailong, 2022. "A review on second-life of Li-ion batteries: prospects, challenges, and issues," Energy, Elsevier, vol. 241(C).
    14. Binghong Han & Jonathon R. Harding & Johanna K. S. Goodman & Zhuhua Cai & Quinn C. Horn, 2022. "End-of-Charge Temperature Rise and State-of-Health Evaluation of Aged Lithium-Ion Battery," Energies, MDPI, vol. 16(1), pages 1-17, December.
    15. Francesco Lo Franco & Antonio Morandi & Pietro Raboni & Gabriele Grandi, 2021. "Efficiency Comparison of DC and AC Coupling Solutions for Large-Scale PV+BESS Power Plants," Energies, MDPI, vol. 14(16), pages 1-22, August.
    16. Ziad M. Ali & Martin Calasan & Shady H. E. Abdel Aleem & Francisco Jurado & Foad H. Gandoman, 2023. "Applications of Energy Storage Systems in Enhancing Energy Management and Access in Microgrids: A Review," Energies, MDPI, vol. 16(16), pages 1-41, August.
    17. Mobin Naderi & Diane Palmer & Matthew J. Smith & Erica E. F. Ballantyne & David A. Stone & Martin P. Foster & Daniel T. Gladwin & Amirhossein Khazali & Yazan Al-Wreikat & Andrew Cruden & Ewan Fraser, 2024. "Techno-Economic Planning of a Fully Renewable Energy-Based Autonomous Microgrid with Both Single and Hybrid Energy Storage Systems," Energies, MDPI, vol. 17(4), pages 1-31, February.
    18. Kang, Hyuna & Jung, Seunghoon & Lee, Minhyun & Hong, Taehoon, 2022. "How to better share energy towards a carbon-neutral city? A review on application strategies of battery energy storage system in city," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    19. 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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