IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v113y2018icp673-687.html
   My bibliography  Save this article

A prospective economic assessment of residential PV self-consumption with batteries and its systemic effects: The French case in 2030

Author

Listed:
  • Yu, Hyun Jin Julie

Abstract

The coupling market dynamics of PV sector and Li-ion batteries enhances the economics of residential PV self-consumption. If residential PV self-consumption systems become economically competitive in the near future, end-users will be willing to switch to PV self-consumption instead of using power from the network. However, if this transition were to occur massively or suddenly, the national energy system would be faced with a radical change. Our study has shown that French residential PV systems combined with Li-ion batteries could become profitable for individual investors before 2030. The demand in the residential sector would thus be natural in the near future in France. However, massive PV integration raises new issues for electricity system stakeholders (e.g. profit losses for traditional power generators, grid management, and sub-optimisation of the power system). This study has shown that PV self-consumption with batteries has a smaller impact on the power system than full grid injection. It is also shown that rapid integration is more costly than the progressive option with regard to PV system integration. We thus recommend a regular and progressive policy when transitioning to PV self-consumption to allow enough time for stakeholders to adapt to the new market situation.

Suggested Citation

  • Yu, Hyun Jin Julie, 2018. "A prospective economic assessment of residential PV self-consumption with batteries and its systemic effects: The French case in 2030," Energy Policy, Elsevier, vol. 113(C), pages 673-687.
    • Handle: RePEc:eee:enepol:v:113:y:2018:i:c:p:673-687
    DOI: 10.1016/j.enpol.2017.11.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517307437
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.11.005?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. repec:dau:papers:123456789/10016 is not listed on IDEAS
    2. Haas, Reinhard & Lettner, Georg & Auer, Hans & Duic, Neven, 2013. "The looming revolution: How photovoltaics will change electricity markets in Europe fundamentally," Energy, Elsevier, vol. 57(C), pages 38-43.
    3. Sen, Souvik & Ganguly, Sourav, 2017. "Opportunities, barriers and issues with renewable energy development – A discussion," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1170-1181.
    4. Hirth, Lion & Ueckerdt, Falko & Edenhofer, Ottmar, 2015. "Integration costs revisited – An economic framework for wind and solar variability," Renewable Energy, Elsevier, vol. 74(C), pages 925-939.
    5. 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.
    6. Diouf, Boucar & Pode, Ramchandra, 2015. "Potential of lithium-ion batteries in renewable energy," Renewable Energy, Elsevier, vol. 76(C), pages 375-380.
    7. Ueckerdt, Falko & Hirth, Lion & Luderer, Gunnar & Edenhofer, Ottmar, 2013. "System LCOE: What are the costs of variable renewables?," Energy, Elsevier, vol. 63(C), pages 61-75.
    8. Severin Borenstein, 2012. "The Private and Public Economics of Renewable Electricity Generation," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 67-92, Winter.
    9. Sharp, John A. & Price, David H. R., 1990. "Experience curve models in the electricity supply industry," International Journal of Forecasting, Elsevier, vol. 6(4), pages 531-540, December.
    10. Reichelstein, Stefan & Yorston, Michael, 2013. "The prospects for cost competitive solar PV power," Energy Policy, Elsevier, vol. 55(C), pages 117-127.
    11. Sommerfeld, Jeff & Buys, Laurie & Vine, Desley, 2017. "Residential consumers’ experiences in the adoption and use of solar PV," Energy Policy, Elsevier, vol. 105(C), pages 10-16.
    12. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    13. Candelise, Chiara & Winskel, Mark & Gross, Robert J.K., 2013. "The dynamics of solar PV costs and prices as a challenge for technology forecasting," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 96-107.
    14. Marco Cometto & Jan Horst Keppler, 2012. "Nuclear Energy and Renewables - System Effects in Low-Carbon Electricity Systems," Working Papers hal-01609471, HAL.
    15. Paul L. Joskow, 2011. "Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies," American Economic Review, American Economic Association, vol. 101(3), pages 238-241, May.
    16. Mundada, Aishwarya S. & Shah, Kunal K. & Pearce, J.M., 2016. "Levelized cost of electricity for solar photovoltaic, battery and cogen hybrid systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 692-703.
    17. Luthra, Sunil & Kumar, Sanjay & Garg, Dixit & Haleem, Abid, 2015. "Barriers to renewable/sustainable energy technologies adoption: Indian perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 762-776.
    18. Saskia Lavrijssen & Arturo Carrillo Parra, 2017. "Radical Prosumer Innovations in the Electricity Sector and the Impact on Prosumer Regulation," Sustainability, MDPI, vol. 9(7), pages 1-21, July.
    19. Neij, Lena, 1997. "Use of experience curves to analyse the prospects for diffusion and adoption of renewable energy technology," Energy Policy, Elsevier, vol. 25(13), pages 1099-1107, November.
    20. Luthander, Rasmus & Widén, Joakim & Nilsson, Daniel & Palm, Jenny, 2015. "Photovoltaic self-consumption in buildings: A review," Applied Energy, Elsevier, vol. 142(C), pages 80-94.
    21. Reddy, Sudhakar & Painuly, J.P, 2004. "Diffusion of renewable energy technologies—barriers and stakeholders’ perspectives," Renewable Energy, Elsevier, vol. 29(9), pages 1431-1447.
    22. Kyriakopoulos, Grigorios L. & Arabatzis, Garyfallos, 2016. "Electrical energy storage systems in electricity generation: Energy policies, innovative technologies, and regulatory regimes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1044-1067.
    23. Quoilin, Sylvain & Kavvadias, Konstantinos & Mercier, Arnaud & Pappone, Irene & Zucker, Andreas, 2016. "Quantifying self-consumption linked to solar home battery systems: Statistical analysis and economic assessment," Applied Energy, Elsevier, vol. 182(C), pages 58-67.
    24. Tsantopoulos, Georgios & Arabatzis, Garyfallos & Tampakis, Stilianos, 2014. "Public attitudes towards photovoltaic developments: Case study from Greece," Energy Policy, Elsevier, vol. 71(C), pages 94-106.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Günther, Claudia & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Prosumage of solar electricity: Tariff design, capacity investments, and power sector effects," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 152.
    2. Vladimir Z. Gjorgievski & Nikolas G. Chatzigeorgiou & Venizelos Venizelou & Georgios C. Christoforidis & George E. Georghiou & Grigoris K. Papagiannis, 2020. "Evaluation of Load Matching Indicators in Residential PV Systems-the Case of Cyprus," Energies, MDPI, vol. 13(8), pages 1-18, April.
    3. Claudia Gunther & Wolf-Peter Schill & Alexander Zerrahn, 2019. "Prosumage of solar electricity: tariff design, capacity investments, and power system effects," Papers 1907.09855, arXiv.org.

    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. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi & Vincenzo Stornelli, 2018. "Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis," Sustainability, MDPI, vol. 10(9), pages 1-29, August.
    2. Yu, Hyun Jin Julie, 2021. "System contributions of residential battery systems: New perspectives on PV self-consumption," Energy Economics, Elsevier, vol. 96(C).
    3. Strupeit, Lars, 2017. "An innovation system perspective on the drivers of soft cost reduction for photovoltaic deployment: The case of Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 273-286.
    4. Romeiro, Diogo Lisbona & Almeida, Edmar Luiz Fagundes de & Losekann, Luciano, 2020. "Systemic value of electricity sources – What we can learn from the Brazilian experience?," Energy Policy, Elsevier, vol. 138(C).
    5. Lion Hirth, Falko Ueckerdt, and Ottmar Edenhofer, 2016. "Why Wind Is Not Coal: On the Economics of Electricity Generation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    6. Sommerfeldt, Nelson & Madani, Hatef, 2017. "Revisiting the techno-economic analysis process for building-mounted, grid-connected solar photovoltaic systems: Part one – Review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1379-1393.
    7. René Aïd & Matteo Basei & Huyên Pham, 2017. "The coordination of centralised and distributed generation," Working Papers hal-01517165, HAL.
    8. 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).
    9. 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.
    10. Ren'e Aid & Matteo Basei & Huy^en Pham, 2017. "A McKean-Vlasov approach to distributed electricity generation development," Papers 1705.01302, arXiv.org, revised Nov 2019.
    11. de Oliveira e Silva, Guilherme & Hendrick, Patrick, 2017. "Photovoltaic self-sufficiency of Belgian households using lithium-ion batteries, and its impact on the grid," Applied Energy, Elsevier, vol. 195(C), pages 786-799.
    12. Lafond, François & Bailey, Aimee Gotway & Bakker, Jan David & Rebois, Dylan & Zadourian, Rubina & McSharry, Patrick & Farmer, J. Doyne, 2018. "How well do experience curves predict technological progress? A method for making distributional forecasts," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 104-117.
    13. Alexis Tantet & Philippe Drobinski, 2021. "A Minimal System Cost Minimization Model for Variable Renewable Energy Integration: Application to France and Comparison to Mean-Variance Analysis," Energies, MDPI, vol. 14(16), pages 1-38, August.
    14. René Aïd & Matteo Basei & Huyên Pham, 2020. "A McKean–Vlasov approach to distributed electricity generation development," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 91(2), pages 269-310, April.
    15. Chen, Hao & Gao, Xin-Ya & Liu, Jian-Yu & Zhang, Qian & Yu, Shiwei & Kang, Jia-Ning & Yan, Rui & Wei, Yi-Ming, 2020. "The grid parity analysis of onshore wind power in China: A system cost perspective," Renewable Energy, Elsevier, vol. 148(C), pages 22-30.
    16. Ruhnau, Oliver & Hirth, Lion & Praktiknjo, Aaron, 2020. "Heating with wind: Economics of heat pumps and variable renewables," Energy Economics, Elsevier, vol. 92(C).
    17. Lion Hirth, 2015. "The Optimal Share of Variable Renewables: How the Variability of Wind and Solar Power affects their Welfare-optimal Deployment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    18. Schopfer, S. & Tiefenbeck, V. & Staake, T., 2018. "Economic assessment of photovoltaic battery systems based on household load profiles," Applied Energy, Elsevier, vol. 223(C), pages 229-248.
    19. Kantamneni, Abhilash & Winkler, Richelle & Gauchia, Lucia & Pearce, Joshua M., 2016. "Emerging economic viability of grid defection in a northern climate using solar hybrid systems," Energy Policy, Elsevier, vol. 95(C), pages 378-389.
    20. Majah-Leah Ravago & James Roumasset, 2016. "The Public Economics of Electricity Policy with Philippine Applications," Working Papers 201613, University of Hawaii at Manoa, Department of Economics.

    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:enepol:v:113:y:2018:i:c:p:673-687. 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.elsevier.com/locate/enpol .

    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.