IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v239y2022ipas0360544221021897.html
   My bibliography  Save this article

Economics of the Li-ion batteries and reversible fuel cells as energy storage systems when coupled with dynamic electricity pricing schemes

Author

Listed:
  • Mayyas, Ahmad
  • Chadly, Assia
  • Amer, Saed Talib
  • Azar, Elie

Abstract

The intermittent nature of power generated by renewable energy systems makes it harder for many power grids to accommodate large generations in short period of times. In this paper, we quantify and discuss the cost associated with storing excess energy from the wholesale electricity markets in the United States in the form of hydrogen using proton exchange membrane reversible fuel cells (PEM-RFC) and in the form of electrochemical energy stored in lithium-ion batteries (LIB). The key financial metric used in this study is the levelized cost of electricity storage (LCOS). Results show that electricity can be stored in many regions in the U.S. at very competitive costs, reaching as low as 16.6¢/kWh using RFC and 8.6¢/kWh using LIB using electricity purchased from California Independent System Operator (CAISO). These values are near the future targets set by the U.S. Department of Energy of 5¢/kWh. Sensitivity analysis revealed that the LCOS using both ESSs is dependent on the following design and financial parameters from higher to lower effect: ESS roundtrip efficiency, system capital cost and the expected system lifetime, respectively. Analysis of system performance and economics showed that LIB seem to have better economic advantage based on the LCOS values, but lack the flexibility of the RFC system. RFC, on the other hand, has more advantages in terms of the size of energy storage capacity, operational charging/discharging flexibility, and the effect on increasing the grid resiliency, especially during long periods of power outages.

Suggested Citation

  • Mayyas, Ahmad & Chadly, Assia & Amer, Saed Talib & Azar, Elie, 2022. "Economics of the Li-ion batteries and reversible fuel cells as energy storage systems when coupled with dynamic electricity pricing schemes," Energy, Elsevier, vol. 239(PA).
    • Handle: RePEc:eee:energy:v:239:y:2022:i:pa:s0360544221021897
    DOI: 10.1016/j.energy.2021.121941
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544221021897
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2021.121941?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. Rehman, Shafiqur & Al-Hadhrami, Luai M. & Alam, Md. Mahbub, 2015. "Pumped hydro energy storage system: A technological review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 586-598.
    2. Patteeuw, Dieter & Henze, Gregor P. & Helsen, Lieve, 2016. "Comparison of load shifting incentives for low-energy buildings with heat pumps to attain grid flexibility benefits," Applied Energy, Elsevier, vol. 167(C), pages 80-92.
    3. McIlwaine, Neil & Foley, Aoife M. & Morrow, D. John & Al Kez, Dlzar & Zhang, Chongyu & Lu, Xi & Best, Robert J., 2021. "A state-of-the-art techno-economic review of distributed and embedded energy storage for energy systems," Energy, Elsevier, vol. 229(C).
    4. Birge, John R. & Hortaçsu, Ali & Mercadal, Ignacia & Pavlin, J. Michael, 2018. "Limits to arbitrage in electricity markets: A case study of MISO," Energy Economics, Elsevier, vol. 75(C), pages 518-533.
    5. 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.
    6. Khatib, F.N. & Wilberforce, Tabbi & Ijaodola, Oluwatosin & Ogungbemi, Emmanuel & El-Hassan, Zaki & Durrant, A. & Thompson, J. & Olabi, A.G., 2019. "Material degradation of components in polymer electrolyte membrane (PEM) electrolytic cell and mitigation mechanisms: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 1-14.
    7. Zhao, Xueyuan & Gao, Weijun & Qian, Fanyue & Ge, Jian, 2021. "Electricity cost comparison of dynamic pricing model based on load forecasting in home energy management system," Energy, Elsevier, vol. 229(C).
    8. Kamyab, Farhad & Bahrami, Shahab, 2016. "Efficient operation of energy hubs in time-of-use and dynamic pricing electricity markets," Energy, Elsevier, vol. 106(C), pages 343-355.
    9. Ou, Kai & Yuan, Wei-Wei & Kim, Young-Bae, 2021. "Development of optimal energy management for a residential fuel cell hybrid power system with heat recovery," Energy, Elsevier, vol. 219(C).
    10. Chen, Huicui & Pei, Pucheng & Song, Mancun, 2015. "Lifetime prediction and the economic lifetime of Proton Exchange Membrane fuel cells," Applied Energy, Elsevier, vol. 142(C), pages 154-163.
    11. Argyrou, Maria C. & Christodoulides, Paul & Kalogirou, Soteris A., 2018. "Energy storage for electricity generation and related processes: Technologies appraisal and grid scale applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 804-821.
    12. Charani Shandiz, Saeid & Foliente, Greg & Rismanchi, Behzad & Wachtel, Amanda & Jeffers, Robert F., 2020. "Resilience framework and metrics for energy master planning of communities," Energy, Elsevier, vol. 203(C).
    13. Lin, Qian & Wang, Jun & Xiong, Rui & Shen, Weixiang & He, Hongwen, 2019. "Towards a smarter battery management system: A critical review on optimal charging methods of lithium ion batteries," Energy, Elsevier, vol. 183(C), pages 220-234.
    14. Marino, C. & Nucara, A. & Pietrafesa, M. & Pudano, A., 2013. "An energy self-sufficient public building using integrated renewable sources and hydrogen storage," Energy, Elsevier, vol. 57(C), pages 95-105.
    15. Paul L. Joskow & Catherine D. Wolfram, 2012. "Dynamic Pricing of Electricity," American Economic Review, American Economic Association, vol. 102(3), pages 381-385, May.
    16. Pastor-Fernández, Carlos & Yu, Tung Fai & Widanage, W. Dhammika & Marco, James, 2019. "Critical review of non-invasive diagnosis techniques for quantification of degradation modes in lithium-ion batteries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 138-159.
    17. Ren, Lei & Zhou, Sheng & Ou, Xunmin, 2020. "Life-cycle energy consumption and greenhouse-gas emissions of hydrogen supply chains for fuel-cell vehicles in China," Energy, Elsevier, vol. 209(C).
    18. Lai, Chun Sing & Locatelli, Giorgio, 2021. "Economic and financial appraisal of novel large-scale energy storage technologies," Energy, Elsevier, vol. 214(C).
    19. Wonchang Hur & Yongma Moon & Kwangsup Shin & Wooje Kim & Suchul Nam & Kijun Park, 2015. "Economic Value of Li-ion Energy Storage System in Frequency Regulation Application from Utility Firm’s Perspective in Korea," Energies, MDPI, vol. 8(6), pages 1-18, May.
    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. Shahparasti, Mahdi & Rajaei, Amirhossein & Tarrassó, Andres & Luna, Alvaro, 2022. "A multi-output AC/DC energy conversion system for grid integration of bioelectrochemical power-to-gas storage," Energy, Elsevier, vol. 249(C).
    2. Falama, Ruben Zieba & Saidi, Abdelaziz Salah & Soulouknga, Marcel Hamda & Salah, Chokri Ben, 2023. "A techno-economic comparative study of renewable energy systems based different storage devices," Energy, Elsevier, vol. 266(C).
    3. Zhou, Yuekuan, 2023. "A dynamic self-learning grid-responsive strategy for battery sharing economy—multi-objective optimisation and posteriori multi-criteria decision making," Energy, Elsevier, vol. 266(C).
    4. Luciano De Tommasi & Pádraig Lyons, 2022. "Towards the Integration of Flexible Green Hydrogen Demand and Production in Ireland: Opportunities, Barriers, and Recommendations," Energies, MDPI, vol. 16(1), pages 1-32, December.
    5. Calise, Francesco & Cappiello, Francesco Liberato & Cimmino, Luca & Dentice d’Accadia, Massimo & Vicidomini, Maria, 2023. "Renewable smart energy network: A thermoeconomic comparison between conventional lithium-ion batteries and reversible solid oxide fuel cells," Renewable Energy, Elsevier, vol. 214(C), pages 74-95.
    6. Michas, Serafeim & Flamos, Alexandros, 2023. "Are there preferable capacity combinations of renewables and storage? Exploratory quantifications along various technology deployment pathways," Energy Policy, Elsevier, vol. 174(C).
    7. Shabani, Masoume & Wallin, Fredrik & Dahlquist, Erik & Yan, Jinyue, 2023. "The impact of battery operating management strategies on life cycle cost assessment in real power market for a grid-connected residential battery application," Energy, Elsevier, vol. 270(C).
    8. Chadly, Assia & Azar, Elie & Maalouf, Maher & Mayyas, Ahmad, 2022. "Techno-economic analysis of energy storage systems using reversible fuel cells and rechargeable batteries in green buildings," Energy, Elsevier, vol. 247(C).

    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. Pei, Pucheng & Meng, Yining & Chen, Dongfang & Ren, Peng & Wang, Mingkai & Wang, Xizhong, 2023. "Lifetime prediction method of proton exchange membrane fuel cells based on current degradation law," Energy, Elsevier, vol. 265(C).
    2. Chen, Dongfang & Pei, Pucheng & Meng, Yining & Ren, Peng & Li, Yuehua & Wang, Mingkai & Wang, Xizhong, 2022. "Novel extraction method of working condition spectrum for the lifetime prediction and energy management strategy evaluation of automotive fuel cells," Energy, Elsevier, vol. 255(C).
    3. Pan, Yue & Kong, Xiangdong & Yuan, Yuebo & Sun, Yukun & Han, Xuebing & Yang, Hongxin & Zhang, Jianbiao & Liu, Xiaoan & Gao, Panlong & Li, Yihui & Lu, Languang & Ouyang, Minggao, 2023. "Detecting the foreign matter defect in lithium-ion batteries based on battery pilot manufacturing line data analyses," Energy, Elsevier, vol. 262(PB).
    4. Guo, Zhongjie & Wei, Wei & Chen, Laijun & Zhang, Xiaoping & Mei, Shengwei, 2021. "Equilibrium model of a regional hydrogen market with renewable energy based suppliers and transportation costs," Energy, Elsevier, vol. 220(C).
    5. Mahfoud, Rabea Jamil & Alkayem, Nizar Faisal & Zhang, Yuquan & Zheng, Yuan & Sun, Yonghui & Alhelou, Hassan Haes, 2023. "Optimal operation of pumped hydro storage-based energy systems: A compendium of current challenges and future perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 178(C).
    6. Qi, Meng & Park, Jinwoo & Landon, Robert Stephen & Kim, Jeongdong & Liu, Yi & Moon, Il, 2022. "Continuous and flexible Renewable-Power-to-Methane via liquid CO2 energy storage: Revisiting the techno-economic potential," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    7. Alessandro Arrigoni & Valeria Arosio & Andrea Basso Peressut & Saverio Latorrata & Giovanni Dotelli, 2022. "Greenhouse Gas Implications of Extending the Service Life of PEM Fuel Cells for Automotive Applications: A Life Cycle Assessment," Clean Technol., MDPI, vol. 4(1), pages 1-17, February.
    8. Kuo, Jenn-Kun & Hsieh, Chun-Yao, 2021. "Numerical investigation into effects of ejector geometry and operating conditions on hydrogen recirculation ratio in 80 kW PEM fuel cell system," Energy, Elsevier, vol. 233(C).
    9. Nikolay Rogalev & Andrey Rogalev & Vladimir Kindra & Vladimir Naumov & Igor Maksimov, 2022. "Comparative Analysis of Energy Storage Methods for Energy Systems and Complexes," Energies, MDPI, vol. 15(24), pages 1-17, December.
    10. Olabi, A.G. & Wilberforce, Tabbi & Sayed, Enas Taha & Abo-Khalil, Ahmed G. & Maghrabie, Hussein M. & Elsaid, Khaled & Abdelkareem, Mohammad Ali, 2022. "Battery energy storage systems and SWOT (strengths, weakness, opportunities, and threats) analysis of batteries in power transmission," Energy, Elsevier, vol. 254(PA).
    11. Olabi, A.G. & Onumaegbu, C. & Wilberforce, Tabbi & Ramadan, Mohamad & Abdelkareem, Mohammad Ali & Al – Alami, Abdul Hai, 2021. "Critical review of energy storage systems," Energy, Elsevier, vol. 214(C).
    12. Song, Ke & Wang, Yimin & Ding, Yuhang & Xu, Hongjie & Mueller-Welt, Philip & Stuermlinger, Tobias & Bause, Katharina & Ehrmann, Christopher & Weinmann, Hannes W. & Schaefer, Jens & Fleischer, Juergen , 2022. "Assembly techniques for proton exchange membrane fuel cell stack: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    13. Jordehi, A. Rezaee, 2019. "Optimisation of demand response in electric power systems, a review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 308-319.
    14. Makhdoomi, Sina & Askarzadeh, Alireza, 2020. "Daily performance optimization of a grid-connected hybrid system composed of photovoltaic and pumped hydro storage (PV/PHS)," Renewable Energy, Elsevier, vol. 159(C), pages 272-285.
    15. Li, Tianyu & Liu, Huiying & Wang, Hui & Yao, Yongming, 2020. "Hierarchical predictive control-based economic energy management for fuel cell hybrid construction vehicles," Energy, Elsevier, vol. 198(C).
    16. Li, Yanfei & Taghizadeh-Hesary, Farhad, 2022. "The economic feasibility of green hydrogen and fuel cell electric vehicles for road transport in China," Energy Policy, Elsevier, vol. 160(C).
    17. Hunt, Julian David & Nascimento, Andreas & Zakeri, Behnam & Barbosa, Paulo Sérgio Franco, 2022. "Hydrogen Deep Ocean Link: a global sustainable interconnected energy grid," Energy, Elsevier, vol. 249(C).
    18. Kim, Minsoo & Park, Taeseop & Jeong, Jaeik & Kim, Hongseok, 2023. "Stochastic optimization of home energy management system using clustered quantile scenario reduction," Applied Energy, Elsevier, vol. 349(C).
    19. 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.
    20. Magazzino, Cosimo & Mele, Marco & Schneider, Nicolas, 2021. "A D2C algorithm on the natural gas consumption and economic growth: Challenges faced by Germany and Japan," Energy, Elsevier, vol. 219(C).

    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:239:y:2022:i:pa:s0360544221021897. 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.