IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v67y2020ics0957178720301041.html
   My bibliography  Save this article

Business case analysis of hybrid systems consisting of battery storage and power-to-heat on the German energy market

Author

Listed:
  • Draheim, Patrick
  • Schlachter, Uli
  • Wigger, Henning
  • Worschech, Alena
  • Brand, Urte
  • Diekmann, Theys
  • Schuldt, Frank
  • Hanke, Benedikt
  • von Maydell, Karsten
  • Vogt, Thomas

Abstract

Declining prices on frequency containment reserve (FCR) markets endanger the profitability of battery energy storage systems (BESS). BESS combined with power-to-heat units could improve the economics both by supplying higher power rates on FCR markets and by converting excessive power into heat. Two cases were investigated with a techno-economic model using primary operation and market data of 2018/2019. The system amortises after 12 years with a net present value of two million € operating on the FCR market. No improvement was realized by additional arbitrage trading. Taxes, levies and charges frameworks are crucial for the economic success of hybrid systems.

Suggested Citation

  • Draheim, Patrick & Schlachter, Uli & Wigger, Henning & Worschech, Alena & Brand, Urte & Diekmann, Theys & Schuldt, Frank & Hanke, Benedikt & von Maydell, Karsten & Vogt, Thomas, 2020. "Business case analysis of hybrid systems consisting of battery storage and power-to-heat on the German energy market," Utilities Policy, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:juipol:v:67:y:2020:i:c:s0957178720301041
    DOI: 10.1016/j.jup.2020.101110
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178720301041
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2020.101110?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. Braeuer, Fritz & Rominger, Julian & McKenna, Russell & Fichtner, Wolf, 2019. "Battery storage systems: An economic model-based analysis of parallel revenue streams and general implications for industry," Applied Energy, Elsevier, vol. 239(C), pages 1424-1440.
    2. A. Stephan & B. Battke & M. D. Beuse & J. H. Clausdeinken & T. S. Schmidt, 2016. "Limiting the public cost of stationary battery deployment by combining applications," Nature Energy, Nature, vol. 1(7), pages 1-9, July.
    3. Rintamäki, Tuomas & Siddiqui, Afzal S. & Salo, Ahti, 2017. "Does renewable energy generation decrease the volatility of electricity prices? An analysis of Denmark and Germany," Energy Economics, Elsevier, vol. 62(C), pages 270-282.
    4. Melo, S.P. & Brand, U. & Vogt, T. & Telle, J.S. & Schuldt, F. & Maydell, K.v., 2019. "Primary frequency control provided by hybrid battery storage and power-to-heat system," Applied Energy, Elsevier, vol. 233, pages 220-231.
    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. Sovacool, Benjamin K. & Cabeza, Luisa F. & Pisello, Anna Laura & Colladon, Andrea Fronzetti & Larijani, Hatef Madani & Dawoud, Belal & Martiskainen, Mari, 2021. "Decarbonizing household heating: Reviewing demographics, geography and low-carbon practices and preferences in five European countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    2. Collath, Nils & Cornejo, Martin & Engwerth, Veronika & Hesse, Holger & Jossen, Andreas, 2023. "Increasing the lifetime profitability of battery energy storage systems through aging aware operation," Applied Energy, Elsevier, vol. 348(C).
    3. Pakeeza Bano & Kashif Imran & Abdul Kashif Janjua & Abdullah Abusorrah & Kinza Fida & Hesham Alhumade, 2023. "System and Market-Wide Impact Analysis of Coordinated Demand Response and Battery Storage Operation by a Load-Serving Entity," Energies, MDPI, vol. 16(4), pages 1-22, February.
    4. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2022. "The impact of a subsidized tax deduction on residential solar photovoltaic-battery energy storage systems," Utilities Policy, Elsevier, vol. 75(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. 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).
    2. 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).
    3. Rangarajan, Arvind & Foley, Sean & Trück, Stefan, 2023. "Assessing the impact of battery storage on Australian electricity markets," Energy Economics, Elsevier, vol. 120(C).
    4. Javier L'opez Prol & Wolf-Peter Schill, 2020. "The Economics of Variable Renewables and Electricity Storage," Papers 2012.15371, arXiv.org.
    5. Fabian Scheller & Robert Burkhardt & Robert Schwarzeit & Russell McKenna & Thomas Bruckner, 2020. "Competition between simultaneous demand-side flexibility options: The case of community electricity storage systems," Papers 2011.05809, arXiv.org.
    6. Daniel Fett & Dogan Keles & Thomas Kaschub & Wolf Fichtner, 2019. "Impacts of self-generation and self-consumption on German household electricity prices," Journal of Business Economics, Springer, vol. 89(7), pages 867-891, September.
    7. Mwampashi, Muthe Mathias & Nikitopoulos, Christina Sklibosios & Konstandatos, Otto & Rai, Alan, 2021. "Wind generation and the dynamics of electricity prices in Australia," Energy Economics, Elsevier, vol. 103(C).
    8. Lu, Ye & Suthaharan, Neyavan, 2023. "Electricity price spike clustering: A zero-inflated GARX approach," Energy Economics, Elsevier, vol. 124(C).
    9. Mulleriyawage, U.G.K. & Shen, W.X., 2021. "Impact of demand side management on optimal sizing of residential battery energy storage system," Renewable Energy, Elsevier, vol. 172(C), pages 1250-1266.
    10. Bell, William Paul & Wild, Phillip & Foster, John & Hewson, Michael, 2017. "Revitalising the wind power induced merit order effect to reduce wholesale and retail electricity prices in Australia," Energy Economics, Elsevier, vol. 67(C), pages 224-241.
    11. 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.
    12. Katarzyna Maciejowska, 2022. "A portfolio management of a small RES utility with a Structural Vector Autoregressive model of German electricity markets," Papers 2205.00975, arXiv.org.
    13. Gianfreda, Angelica & Ravazzolo, Francesco & Rossini, Luca, 2020. "Comparing the forecasting performances of linear models for electricity prices with high RES penetration," International Journal of Forecasting, Elsevier, vol. 36(3), pages 974-986.
    14. Bert Willems & Juulia Zhou, 2020. "The Clean Energy Package and Demand Response: Setting Correct Incentives," Energies, MDPI, vol. 13(21), pages 1-19, October.
    15. Bernhard Faessler & Aleksander Bogunović Jakobsen, 2021. "Autonomous Operation of Stationary Battery Energy Storage Systems—Optimal Storage Design and Economic Potential," Energies, MDPI, vol. 14(5), pages 1-12, March.
    16. Abdon, Andreas & Zhang, Xiaojin & Parra, David & Patel, Martin K. & Bauer, Christian & Worlitschek, Jörg, 2017. "Techno-economic and environmental assessment of stationary electricity storage technologies for different time scales," Energy, Elsevier, vol. 139(C), pages 1173-1187.
    17. Kai Xu & Youguang Guo & Gang Lei & Jianguo Zhu, 2023. "A Review of Flywheel Energy Storage System Technologies," Energies, MDPI, vol. 16(18), pages 1-32, September.
    18. Mwampashi, Muthe Mathias & Nikitopoulos, Christina Sklibosios & Rai, Alan & Konstandatos, Otto, 2022. "Large-scale and rooftop solar generation in the NEM: A tale of two renewables strategies," Energy Economics, Elsevier, vol. 115(C).
    19. Russo, Marianna & Kraft, Emil & Bertsch, Valentin & Keles, Dogan, 2022. "Short-term risk management of electricity retailers under rising shares of decentralized solar generation," Energy Economics, Elsevier, vol. 109(C).
    20. Lopez, A. & Ogayar, B. & Hernández, J.C. & Sutil, F.S., 2020. "Survey and assessment of technical and economic features for the provision of frequency control services by household-prosumers," Energy Policy, Elsevier, vol. 146(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:juipol:v:67:y:2020:i:c:s0957178720301041. 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: https://www.sciencedirect.com/journal/utilities-policy .

    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.