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Diffusion and system impact of residential battery storage under different regulatory settings

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  • Fett, Daniel
  • Fraunholz, Christoph
  • Keles, Dogan

Abstract

Cost reductions of rooftop photovoltaics and battery storage, increasing retail electricity prices as well as falling feed-in remuneration provide strong incentives for many German households to engage in self-consumption. These developments may also affect the electricity system as a whole. Against this background, we jointly apply a prosumer simulation and an agent-based electricity market simulation in order to investigate the long-term impacts of a residential battery storage diffusion on the electricity market. We analyze different regulatory frameworks and find significant effects on the household level, yet only moderate system impacts. In the long run, the diffusion of residential battery storage seems difficult to govern, even under a restrictive regulation. In contrast, the way the batteries are operated may be easier to regulate. Policymakers and regulators should focus on this aspect, since a system-friendly battery operation supports the system integration of residential photovoltaics while having little impact on the households’ self-sufficiency.

Suggested Citation

  • Fett, Daniel & Fraunholz, Christoph & Keles, Dogan, 2021. "Diffusion and system impact of residential battery storage under different regulatory settings," Energy Policy, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:enepol:v:158:y:2021:i:c:s0301421521004134
    DOI: 10.1016/j.enpol.2021.112543
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    References listed on IDEAS

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    3. Aniello, Gianmarco & Bertsch, Valentin, 2023. "Shaping the energy transition in the residential sector: Regulatory incentives for aligning household and system perspectives," Applied Energy, Elsevier, vol. 333(C).
    4. Daniel Fett & Christoph Fraunholz & Philipp Schneider, 2023. "Life cycle greenhouse gas emissions of residential battery storage systems: A German case study," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 182-195, February.
    5. Arnold, Fabian & Jeddi, Samir & Sitzmann, Amelie, 2022. "How prices guide investment decisions under net purchasing — An empirical analysis on the impact of network tariffs on residential PV," Energy Economics, Elsevier, vol. 112(C).
    6. Fett, Daniel & Fraunholz, Christoph & Lange, Malin, 2023. "Provision of frequency containment reserve from residential battery storage systems: A German case study," Working Paper Series in Production and Energy 71, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).

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