IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i17p6334-d1230295.html
   My bibliography  Save this article

Battery Energy Storage Systems for the New Electricity Market Landscape: Modeling, State Diagnostics, Management, and Viability—A Review

Author

Listed:
  • Pablo Carrasco Ortega

    (Energy Division, Galicia Institute of Technology ITG, 15003 A Coruña, Spain)

  • Pablo Durán Gómez

    (Energy Division, Galicia Institute of Technology ITG, 15003 A Coruña, Spain)

  • Julio César Mérida Sánchez

    (Energy Division, Galicia Institute of Technology ITG, 15003 A Coruña, Spain)

  • Fernando Echevarría Camarero

    (Energy Division, Galicia Institute of Technology ITG, 15003 A Coruña, Spain)

  • Ángel Á. Pardiñas

    (Energy Division, Galicia Institute of Technology ITG, 15003 A Coruña, Spain)

Abstract

Renewable energy penetration and distributed generation are key for the transition towards more sustainable societies, but they impose a substantial challenge in terms of matching generation with demand due to the intermittent and unpredictable nature of some of these renewable energy sources. Thus, the role of energy storage in today’s and future electricity markets is undisputed. Batteries stand out among the different alternatives for energy storage. The R&D effort into different battery chemistries contributes to reducing the investment associated with battery systems. However, optimizing their operation according to the users’ and the electricity markets’ needs is the turning point to finally make these systems attractive. This review delves into the topic of battery management systems from a battery-technology-independent perspective, and it also explores more fundamental but related aspects, such as battery modeling or state estimation. The techno-economic part of battery energy storage systems is also covered in this document to understand their real potential and viability.

Suggested Citation

  • Pablo Carrasco Ortega & Pablo Durán Gómez & Julio César Mérida Sánchez & Fernando Echevarría Camarero & Ángel Á. Pardiñas, 2023. "Battery Energy Storage Systems for the New Electricity Market Landscape: Modeling, State Diagnostics, Management, and Viability—A Review," Energies, MDPI, vol. 16(17), pages 1-51, August.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:17:p:6334-:d:1230295
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/17/6334/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/17/6334/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jiang, Li & Li, Yong & Huang, Yuduo & Yu, Jiaqi & Qiao, Xuebo & Wang, Yixiao & Huang, Chun & Cao, Yijia, 2020. "Optimization of multi-stage constant current charging pattern based on Taguchi method for Li-Ion battery," Applied Energy, Elsevier, vol. 259(C).
    2. Rafał Kuźniak & Artur Pawelec & Artur Bartosik & Marek Pawełczyk, 2022. "Determination of the Electricity Storage Power and Capacity for Cooperation with the Microgrid Implementing the Peak Shaving Strategy in Selected Industrial Enterprises," Energies, MDPI, vol. 15(13), pages 1-20, June.
    3. Steckel, Tobiah & Kendall, Alissa & Ambrose, Hanjiro, 2021. "Applying levelized cost of storage methodology to utility-scale second-life lithium-ion battery energy storage systems," Applied Energy, Elsevier, vol. 300(C).
    4. Ahmadiahangar, Roya & Karami, Hossein & Husev, Oleksandr & Blinov, Andrei & Rosin, Argo & Jonaitis, Audrius & Sanjari, Mohammad Javad, 2022. "Analytical approach for maximizing self-consumption of nearly zero energy buildings- case study: Baltic region," Energy, Elsevier, vol. 238(PB).
    5. Yu Hu & Miguel Armada & Maria Jesus Sanchez, 2021. "Potential utilization of Battery Energy Storage Systems (BESS) in the major European electricity markets," Papers 2112.09816, arXiv.org, revised Jun 2022.
    6. Tervo, Eric & Agbim, Kenechi & DeAngelis, Freddy & Hernandez, Jeffrey & Kim, Hye Kyung & Odukomaiya, Adewale, 2018. "An economic analysis of residential photovoltaic systems with lithium ion battery storage in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 1057-1066.
    7. Oliva H., Sebastian & Passey, Rob & Abdullah, Md Abu, 2019. "A semi-empirical financial assessment of combining residential photovoltaics, energy efficiency and battery storage systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 206-214.
    8. Liyuan Shao & Yong Zhang & Xiujuan Zheng & Xin He & Yufeng Zheng & Zhiwei Liu, 2023. "A Review of Remaining Useful Life Prediction for Energy Storage Components Based on Stochastic Filtering Methods," Energies, MDPI, vol. 16(3), pages 1-22, February.
    9. Fernando Echevarría Camarero & Ana Ogando-Martínez & Pablo Durán Gómez & Pablo Carrasco Ortega, 2022. "Profitability of Batteries in Photovoltaic Systems for Small Industrial Consumers in Spain under Current Regulatory Framework and Energy Prices," Energies, MDPI, vol. 16(1), pages 1-19, December.
    10. Shabani, Masoume & Dahlquist, Erik & Wallin, Fredrik & Yan, Jinyue, 2020. "Techno-economic comparison of optimal design of renewable-battery storage and renewable micro pumped hydro storage power supply systems: A case study in Sweden," Applied Energy, Elsevier, vol. 279(C).
    11. Gong, Dongliang & Gao, Ying & Kou, Yalin & Wang, Yurang, 2022. "State of health estimation for lithium-ion battery based on energy features," Energy, Elsevier, vol. 257(C).
    12. Banjo A. Aderemi & S. P. Daniel Chowdhury & Thomas O. Olwal & Adnan M. Abu-Mahfouz, 2018. "Techno-Economic Feasibility of Hybrid Solar Photovoltaic and Battery Energy Storage Power System for a Mobile Cellular Base Station in Soshanguve, South Africa," Energies, MDPI, vol. 11(6), pages 1-26, June.
    13. Wang, Yue & Das, Ridoy & Putrus, Ghanim & Kotter, Richard, 2020. "Economic evaluation of photovoltaic and energy storage technologies for future domestic energy systems – A case study of the UK," Energy, Elsevier, vol. 203(C).
    14. Paulo Rotella Junior & Luiz Célio Souza Rocha & Sandra Naomi Morioka & Ivan Bolis & Gianfranco Chicco & Andrea Mazza & Karel Janda, 2021. "Economic Analysis of the Investments in Battery Energy Storage Systems: Review and Current Perspectives," Energies, MDPI, vol. 14(9), pages 1-29, April.
    15. Changgun Lee & Seunghyuk Im & Jaeyeop Jung & Byongjun Lee, 2020. "BESS Deployment Strategy in Jeju Carbon-Free Islands for Reducing Renewable Energy Curtailment," Energies, MDPI, vol. 13(22), pages 1-13, November.
    16. Hu, Yu & Armada, Miguel & Jesús Sánchez, María, 2022. "Potential utilization of battery energy storage systems (BESS) in the major European electricity markets," Applied Energy, Elsevier, vol. 322(C).
    17. Ivan Pavić & Zora Luburić & Hrvoje Pandžić & Tomislav Capuder & Ivan Andročec, 2019. "Defining and Evaluating Use Cases for Battery Energy Storage Investments: Case Study in Croatia," Energies, MDPI, vol. 12(3), pages 1-23, January.
    18. El-Bidairi, Kutaiba S. & Nguyen, Hung Duc & Mahmoud, Thair S. & Jayasinghe, S.D.G. & Guerrero, Josep M., 2020. "Optimal sizing of Battery Energy Storage Systems for dynamic frequency control in an islanded microgrid: A case study of Flinders Island, Australia," Energy, Elsevier, vol. 195(C).
    19. de Doile, Gabriel Nasser Doyle & Rotella Junior, Paulo & Rocha, Luiz Célio Souza & Janda, Karel & Aquila, Giancarlo & Peruchi, Rogério Santana & Balestrassi, Pedro Paulo, 2022. "Feasibility of hybrid wind and photovoltaic distributed generation and battery energy storage systems under techno-economic regulation," Renewable Energy, Elsevier, vol. 195(C), pages 1310-1323.
    20. Kalvin Schofield & Petr Musilek, 2022. "State of Charge and Capacity Tracking in Vanadium Redox Flow Battery Systems," Clean Technol., MDPI, vol. 4(3), pages 1-12, June.
    21. Groppi, Daniele & Pfeifer, Antun & Garcia, Davide Astiaso & Krajačić, Goran & Duić, Neven, 2021. "A review on energy storage and demand side management solutions in smart energy islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    22. Henni, Sarah & Becker, Jonas & Staudt, Philipp & vom Scheidt, Frederik & Weinhardt, Christof, 2022. "Industrial peak shaving with battery storage using a probabilistic forecasting approach: Economic evaluation of risk attitude," Applied Energy, Elsevier, vol. 327(C).
    23. Bahloul, Mohamed & Daoud, Mohamed & Khadem, Shafiuzzaman K., 2022. "A bottom-up approach for techno-economic analysis of battery energy storage system for Irish grid DS3 service provision," Energy, Elsevier, vol. 245(C).
    24. Korjani, Saman & Casu, Fabio & Damiano, Alfonso & Pilloni, Virginia & Serpi, Alessandro, 2022. "An online energy management tool for sizing integrated PV-BESS systems for residential prosumers," Applied Energy, Elsevier, vol. 313(C).
    25. Cui, Yingzhi & Zuo, Pengjian & Du, Chunyu & Gao, Yunzhi & Yang, Jie & Cheng, Xinqun & Ma, Yulin & Yin, Geping, 2018. "State of health diagnosis model for lithium ion batteries based on real-time impedance and open circuit voltage parameters identification method," Energy, Elsevier, vol. 144(C), pages 647-656.
    26. van der Stelt, Sander & AlSkaif, Tarek & van Sark, Wilfried, 2018. "Techno-economic analysis of household and community energy storage for residential prosumers with smart appliances," Applied Energy, Elsevier, vol. 209(C), pages 266-276.
    27. In-Ho Cho & Pyeong-Yeon Lee & Jong-Hoon Kim, 2019. "Analysis of the Effect of the Variable Charging Current Control Method on Cycle Life of Li-ion Batteries," Energies, MDPI, vol. 12(15), pages 1-11, August.
    28. Ethelbert Ezemobi & Mario Silvagni & Ahmad Mozaffari & Andrea Tonoli & Amir Khajepour, 2022. "State of Health Estimation of Lithium-Ion Batteries in Electric Vehicles under Dynamic Load Conditions," Energies, MDPI, vol. 15(3), pages 1-20, February.
    29. Felice, Alex & Rakocevic, Lucija & Peeters, Leen & Messagie, Maarten & Coosemans, Thierry & Ramirez Camargo, Luis, 2022. "Renewable energy communities: Do they have a business case in Flanders?," Applied Energy, Elsevier, vol. 322(C).
    30. Juha Koskela & Pertti Järventausta, 2023. "Demand Response with Electrical Heating in Detached Houses in Finland and Comparison with BESS for Increasing PV Self-Consumption," Energies, MDPI, vol. 16(1), pages 1-25, January.
    31. Jindal, Abhinav & Shrimali, Gireesh, 2022. "At scale adoption of battery storage technology in Indian power industry: Enablers, frameworks and policies," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    32. Nicola Campagna & Vincenzo Castiglia & Rosario Miceli & Rosa Anna Mastromauro & Ciro Spataro & Marco Trapanese & Fabio Viola, 2020. "Battery Models for Battery Powered Applications: A Comparative Study," Energies, MDPI, vol. 13(16), pages 1-26, August.
    33. Lucas Deotti & Wanessa Guedes & Bruno Dias & Tiago Soares, 2020. "Technical and Economic Analysis of Battery Storage for Residential Solar Photovoltaic Systems in the Brazilian Regulatory Context," Energies, MDPI, vol. 13(24), pages 1-30, December.
    34. Ze Cheng & Jikao Lv & Yanli Liu & Zhihao Yan, 2014. "Estimation of State of Charge for Lithium-Ion Battery Based on Finite Difference Extended Kalman Filter," Journal of Applied Mathematics, Hindawi, vol. 2014, pages 1-10, April.
    35. Md Masud Rana & Mohamed Atef & Md Rasel Sarkar & Moslem Uddin & GM Shafiullah, 2022. "A Review on Peak Load Shaving in Microgrid—Potential Benefits, Challenges, and Future Trend," Energies, MDPI, vol. 15(6), pages 1-17, March.
    36. Chunning Song & Yu Zhang & Qijin Ling & Shaogeng Zheng, 2022. "Joint Estimation of SOC and SOH for Single-Flow Zinc–Nickel Batteries," Energies, MDPI, vol. 15(13), pages 1-16, June.
    37. Shida Jiang & Zhengxiang Song, 2021. "Estimating the State of Health of Lithium-Ion Batteries with a High Discharge Rate through Impedance," Energies, MDPI, vol. 14(16), pages 1-20, August.
    38. Nicola Blasuttigh & Simone Negri & Alessandro Massi Pavan & Enrico Tironi, 2023. "Optimal Sizing and Environ-Economic Analysis of PV-BESS Systems for Jointly Acting Renewable Self-Consumers," Energies, MDPI, vol. 16(3), pages 1-25, January.
    39. Engels, Jonas & Claessens, Bert & Deconinck, Geert, 2019. "Techno-economic analysis and optimal control of battery storage for frequency control services, applied to the German market," Applied Energy, Elsevier, vol. 242(C), pages 1036-1049.
    40. 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.
    41. Jong-Hyun Lee & In-Soo Lee, 2021. "Lithium Battery SOH Monitoring and an SOC Estimation Algorithm Based on the SOH Result," Energies, MDPI, vol. 14(15), pages 1-16, July.
    42. Xing, Yinjiao & He, Wei & Pecht, Michael & Tsui, Kwok Leung, 2014. "State of charge estimation of lithium-ion batteries using the open-circuit voltage at various ambient temperatures," Applied Energy, Elsevier, vol. 113(C), pages 106-115.
    43. Vynnycky, M., 2011. "Analysis of a model for the operation of a vanadium redox battery," Energy, Elsevier, vol. 36(4), pages 2242-2256.
    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. Andrew J. Hutchinson & Daniel T. Gladwin, 2024. "Standalone and Hybridised Flywheels for Frequency Response Services: A Techno-Economic Feasibility Study," Energies, MDPI, vol. 17(11), pages 1-24, May.

    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. Paulo Rotella Junior & Luiz Célio Souza Rocha & Sandra Naomi Morioka & Ivan Bolis & Gianfranco Chicco & Andrea Mazza & Karel Janda, 2021. "Economic Analysis of the Investments in Battery Energy Storage Systems: Review and Current Perspectives," Energies, MDPI, vol. 14(9), pages 1-29, April.
    2. Rômulo de Oliveira Azevêdo & Paulo Rotela Junior & Luiz Célio Souza Rocha & Gianfranco Chicco & Giancarlo Aquila & Rogério Santana Peruchi, 2020. "Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments," Sustainability, MDPI, vol. 12(17), pages 1-40, September.
    3. Md. Shafiul Alam & Tanzi Ahmed Chowdhury & Abhishak Dhar & Fahad Saleh Al-Ismail & M. S. H. Choudhury & Md Shafiullah & Md. Ismail Hossain & Md. Alamgir Hossain & Aasim Ullah & Syed Masiur Rahman, 2023. "Solar and Wind Energy Integrated System Frequency Control: A Critical Review on Recent Developments," Energies, MDPI, vol. 16(2), pages 1-31, January.
    4. Sai, Wei & Pan, Zehua & Liu, Siyu & Jiao, Zhenjun & Zhong, Zheng & Miao, Bin & Chan, Siew Hwa, 2023. "Event-driven forecasting of wholesale electricity price and frequency regulation price using machine learning algorithms," Applied Energy, Elsevier, vol. 352(C).
    5. Ma, Qianli & Wei, Wei & Mei, Shengwei, 2024. "Health-aware coordinate long-term and short-term operation for BESS in energy and frequency regulation markets," Applied Energy, Elsevier, vol. 356(C).
    6. Nitsch, Felix & Deissenroth-Uhrig, Marc & Schimeczek, Christoph & Bertsch, Valentin, 2021. "Economic evaluation of battery storage systems bidding on day-ahead and automatic frequency restoration reserves markets," Applied Energy, Elsevier, vol. 298(C).
    7. Xinfeng Zhang & Xiangjun Li & Kaikai Yang & Zhongyi Wang, 2023. "Lithium-Ion Battery Modeling and State of Charge Prediction Based on Fractional-Order Calculus," Mathematics, MDPI, vol. 11(15), pages 1-15, August.
    8. Jiyoung Eum & Yongki Kim, 2020. "Analysis on Operation Modes of Residential BESS with Balcony-PV for Apartment Houses in Korea," Sustainability, MDPI, vol. 13(1), pages 1-9, December.
    9. Nicola Blasuttigh & Simone Negri & Alessandro Massi Pavan & Enrico Tironi, 2023. "Optimal Sizing and Environ-Economic Analysis of PV-BESS Systems for Jointly Acting Renewable Self-Consumers," Energies, MDPI, vol. 16(3), pages 1-25, January.
    10. Jikai Bi & Jae-Cheon Lee & Hao Liu, 2022. "Performance Comparison of Long Short-Term Memory and a Temporal Convolutional Network for State of Health Estimation of a Lithium-Ion Battery using Its Charging Characteristics," Energies, MDPI, vol. 15(7), pages 1-24, March.
    11. Chennaif, Mohammed & Maaouane, Mohamed & Zahboune, Hassan & Elhafyani, Mohammed & Zouggar, Smail, 2022. "Tri-objective techno-economic sizing optimization of Off-grid and On-grid renewable energy systems using Electric system Cascade Extended analysis and system Advisor Model," Applied Energy, Elsevier, vol. 305(C).
    12. Samuel O. Ezennaya & Julia Kowal, 2024. "Optimizing Energy Arbitrage: Benchmark Models for LFP Battery Dynamic Activation Costs in Reactive Balancing Market," Sustainability, MDPI, vol. 16(9), pages 1-31, April.
    13. Arrinda, M. & Berecibar, M. & Oyarbide, M. & Macicior, H. & Muxika, E. & Messagie, M., 2020. "Levelized cost of electricity calculation of the energy generation plant of a CO2 neutral micro-grid," Energy, Elsevier, vol. 208(C).
    14. Fan, Kesen & Wan, Yiming & Wang, Zhuo & Jiang, Kai, 2023. "Time-efficient identification of lithium-ion battery temperature-dependent OCV-SOC curve using multi-output Gaussian process," Energy, Elsevier, vol. 268(C).
    15. Tee, Wei Hown & Gan, Chin Kim & Sardi, Junainah, 2024. "Benefits of energy storage systems and its potential applications in Malaysia: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    16. de Doile, Gabriel Nasser Doyle & Rotella Junior, Paulo & Rocha, Luiz Célio Souza & Janda, Karel & Aquila, Giancarlo & Peruchi, Rogério Santana & Balestrassi, Pedro Paulo, 2022. "Feasibility of hybrid wind and photovoltaic distributed generation and battery energy storage systems under techno-economic regulation," Renewable Energy, Elsevier, vol. 195(C), pages 1310-1323.
    17. 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).
    18. 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).
    19. Ebrahimi, Mahyar, 2020. "Storing electricity as thermal energy at community level for demand side management," Energy, Elsevier, vol. 193(C).
    20. Zhao, Chunyang & Andersen, Peter Bach & Træholt, Chresten & Hashemi, Seyedmostafa, 2023. "Grid-connected battery energy storage system: a review on application and integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 182(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:gam:jeners:v:16:y:2023:i:17:p:6334-:d:1230295. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.