IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i14p3602-d1697260.html
   My bibliography  Save this article

Levelized Cost of Storage (LCOS) of Battery Energy Storage Systems (BESS) Deployed for Photovoltaic Curtailment Mitigation

Author

Listed:
  • Luca Migliari

    (Department of Mechanical, Chemical and Materials Engineering, University of Cagliari, 09123 Cagliari, Italy)

  • Daniele Cocco

    (Department of Mechanical, Chemical and Materials Engineering, University of Cagliari, 09123 Cagliari, Italy)

  • Mario Petrollese

    (Department of Mechanical, Chemical and Materials Engineering, University of Cagliari, 09123 Cagliari, Italy)

Abstract

Despite the growing application of storage for curtailment mitigation, its cost-effectiveness remains uncertain. This study evaluates the Levelized Cost of Storage, which also represents an implicit threshold revenue, for Lithium-ion Battery Energy Storage Systems deployed for photovoltaic curtailment mitigation. Specifically, the LCOS is assessed—using a mathematical simulation model—for various curtailment scenarios defined by maximum levels (10–40%), hourly profiles (upper limit and proportional), and growth rates (2, 5, and 10 years) at three storage system capacities (0.33, 0.50, 0.67 h) and two European locations (Cagliari and Berlin). The results indicate that the LCOS of batteries deployed for curtailment mitigation is, on average, comparable to that of systems used for bulk energy storage applications (155–320 EUR/MWh) in Cagliari (180–410 EUR/MWh). In contrast, in Berlin, the lower and more variable photovoltaic generation results in significantly higher LCOS values (200–750 EUR/MWh). For both locations, the lowest LCOS values (180 EUR/MWh for Cagliari and 200 EUR/MWh for Berlin), obtained for very high curtailment levels (40%), are significantly above average electricity prices (108 EUR/MWh for Cagliari and 78 EUR/MWh for Berlin), suggesting that BESSs for curtailment mitigation are competitive in the day-ahead market only if their electricity is sold at a significantly higher price. This is particularly true for lower curtailment levels. Indeed, for a curtailment level of 10% reached in 5 years, the LCOS for a 0.5 h BESS capacity is approximately 255 EUR/MWh in Cagliari and 460 EUR/MWh in Berlin. The study further highlights that the curtailment scenario significantly affects the Levelized Cost of Storage, with the upper limit hourly profile being more conservative.

Suggested Citation

  • Luca Migliari & Daniele Cocco & Mario Petrollese, 2025. "Levelized Cost of Storage (LCOS) of Battery Energy Storage Systems (BESS) Deployed for Photovoltaic Curtailment Mitigation," Energies, MDPI, vol. 18(14), pages 1-17, July.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:14:p:3602-:d:1697260
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/14/3602/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/18/14/3602/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fraunholz, Christoph & Tash, Ali & Scheben, Heike & Zillich, Alexander, 2025. "Demand curtailment allocation in interconnected electricity markets," Applied Energy, Elsevier, vol. 377(PD).
    2. Ruggles, Tyler H. & Caldeira, Ken, 2022. "Wind and solar generation may reduce the inter-annual variability of peak residual load in certain electricity systems," Applied Energy, Elsevier, vol. 305(C).
    3. Borbáth, Tamás & Van Hertem, Dirk, 2024. "Appropriate transmission grid representation for European resource adequacy assessments," Applied Energy, Elsevier, vol. 355(C).
    4. Kebede, Abraham Alem & Kalogiannis, Theodoros & Van Mierlo, Joeri & Berecibar, Maitane, 2022. "A comprehensive review of stationary energy storage devices for large scale renewable energy sources grid integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    5. López Prol, Javier & Zilberman, David, 2023. "No alarms and no surprises: Dynamics of renewable energy curtailment in California," Energy Economics, Elsevier, vol. 126(C).
    6. Tuhibur Rahman & Ahmed Al Mansur & Molla Shahadat Hossain Lipu & Md. Siddikur Rahman & Ratil H. Ashique & Mohamad Abou Houran & Rajvikram Madurai Elavarasan & Eklas Hossain, 2023. "Investigation of Degradation of Solar Photovoltaics: A Review of Aging Factors, Impacts, and Future Directions toward Sustainable Energy Management," Energies, MDPI, vol. 16(9), pages 1-30, April.
    7. Rahman, Md Mustafizur & Oni, Abayomi Olufemi & Gemechu, Eskinder & Kumar, Amit, 2021. "The development of techno-economic models for the assessment of utility-scale electro-chemical battery storage systems," Applied Energy, Elsevier, vol. 283(C).
    8. Frew, Bethany A. & Becker, Sarah & Dvorak, Michael J. & Andresen, Gorm B. & Jacobson, Mark Z., 2016. "Flexibility mechanisms and pathways to a highly renewable US electricity future," Energy, Elsevier, vol. 101(C), pages 65-78.
    Full references (including those not matched with items on IDEAS)

    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. Khaled Alawasa & Adib Allahham & Ala’aldeen Al-Halhouli & Mohammed Al-Mahmodi & Musab Hamdan & Yara Khawaja & Hani Muhsen & Saqer Alja’afreh & Abdullah Al-Odienat & Ali Al-Dmour & Ahmad Aljaafreh & Ah, 2025. "Techno-Socio-Economic Framework for Energy Storage System Selection in Jordan," Energies, MDPI, vol. 18(12), pages 1-26, June.
    2. Lin, Mengke & Shen, Jianjian & Guo, Xihai & Ge, Linsong & Lü, Quan, 2025. "Comparison of pumping station and electrochemical energy storage enhancement mode for hydro-wind-photovoltaic hybrid systems," Energy, Elsevier, vol. 315(C).
    3. Mehmet C. Yagci & Thomas Feldmann & Elmar Bollin & Michael Schmidt & Wolfgang G. Bessler, 2022. "Aging Characteristics of Stationary Lithium-Ion Battery Systems with Serial and Parallel Cell Configurations," Energies, MDPI, vol. 15(11), pages 1-19, May.
    4. Efstathios E. Michaelides, 2025. "Energy Efficiency and the Transition to Renewables—Building Communities of the Future," Energies, MDPI, vol. 18(7), pages 1-16, April.
    5. Sánchez-Pozo, Nadia N. & Vanem, Erik & Bloomfield, Hannah & Aizpurua, Jose I., 2025. "A probabilistic risk assessment framework for the impact assessment of extreme events on renewable power plant components," Renewable Energy, Elsevier, vol. 240(C).
    6. Hamoud Alafnan, 2024. "The Impact of PV Panel Degradation Rate, Initial System Efficiency, and Interest Rate on the Levelized Cost of Energy for PV Projects: Saudi Arabia as a Benchmark," Sustainability, MDPI, vol. 16(22), pages 1-20, November.
    7. Li, Wei & Lu, Can & Zhang, Yan-Wu, 2019. "Prospective exploration of future renewable portfolio standard schemes in China via a multi-sector CGE model," Energy Policy, Elsevier, vol. 128(C), pages 45-56.
    8. Hanbin Liu & Yujing Yang & Wenting Jiao & Shaobin Wang & Fangqin Cheng, 2022. "A New Assessment Method for the Redevelopment of Closed Coal Mine—A Case Study in Shanxi Province in China," Sustainability, MDPI, vol. 14(15), pages 1-19, August.
    9. Pin-Han Chen & Cheng-Han Lee & Jun-Yi Wu & Wei-Sheng Chen, 2023. "Perspectives on Taiwan’s Pathway to Net-Zero Emissions," Sustainability, MDPI, vol. 15(6), pages 1-11, March.
    10. Tatiana Potapenko & Jessica S. Döhler & Francisco Francisco & George Lavidas & Irina Temiz, 2023. "Renewable Energy Potential for Micro-Grid at Hvide Sande," Sustainability, MDPI, vol. 15(3), pages 1-17, January.
    11. Yavari, Mohammad & Bohreghi, Iman Mohammadi, 2025. "Developing a green-resilient power network and supply chain: Integrating renewable and traditional energy sources in the face of disruptions," Applied Energy, Elsevier, vol. 377(PC).
    12. Ahmed Al Mansur & Md. Ruhul Amin & Molla Shahadat Hossain Lipu & Md. Imamul Islam & Ratil H. Ashique & Zubaeer Bin Shams & Mohammad Asif ul Haq & Md. Hasan Maruf & ASM Shihavuddin, 2023. "The Effects of Non-Uniformly-Aged Photovoltaic Array on Mismatch Power Loss: A Practical Investigation towards Novel Hybrid Array Configurations," Sustainability, MDPI, vol. 15(17), pages 1-17, September.
    13. Wu, Yunyang & Reedman, Luke J. & Barrett, Mark A. & Spataru, Catalina, 2018. "Comparison of CST with different hours of storage in the Australian National Electricity Market," Renewable Energy, Elsevier, vol. 122(C), pages 487-496.
    14. Herath, N. & Tyner, W.E., 2019. "Intended and unintended consequences of US renewable energy policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    15. Keck, Felix & Jütte, Silke & Lenzen, Manfred & Li, Mengyu, 2022. "Assessment of two optimisation methods for renewable energy capacity expansion planning," Applied Energy, Elsevier, vol. 306(PA).
    16. Reveles-Miranda, María & Ramirez-Rivera, Victor & Pacheco-Catalán, Daniella, 2024. "Hybrid energy storage: Features, applications, and ancillary benefits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    17. Qiao, Long & Pu, Wenhao & Wu, Bingwei & Liu, Ruihang & Song, Nanxin, 2024. "Performance study of a supercritical carbon dioxide energy storage system with non-uniform graded compression heat recovery," Energy, Elsevier, vol. 313(C).
    18. Reichenberg, Lina & Hedenus, Fredrik & Odenberger, Mikael & Johnsson, Filip, 2018. "The marginal system LCOE of variable renewables – Evaluating high penetration levels of wind and solar in Europe," Energy, Elsevier, vol. 152(C), pages 914-924.
    19. Gu, Jiu & Zhou, Shichao & Wang, Lingling & Jiang, Chuanwen & Li, Zuyi, 2025. "A generation directrix-based regulation energy market mechanism for fairer competition in power systems with high renewable energy penetration," Energy, Elsevier, vol. 315(C).
    20. He, Jiawei & Bu, Ningjing & Wen, Weijie & Li, Bin & Zhang, Shouhang & Zhou, Bohao & Wu, Jianzhong, 2025. "Performance analysis and control-coordinated improvement method for distance protection of energy storage station grid-connected lines," Applied Energy, Elsevier, vol. 388(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:18:y:2025:i:14:p:3602-:d:1697260. 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.