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

Author

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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' selfsufficiency.

Suggested Citation

  • Fett, Daniel & Fraunholz, Christoph & Keles, Dogan, 2021. "Diffusion and system impact of residential battery storage under different regulatory settings," Working Paper Series in Production and Energy 55, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
  • Handle: RePEc:zbw:kitiip:55
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    References listed on IDEAS

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    1. 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.
    2. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    3. Dietrich, Andreas & Weber, Christoph, 2018. "What drives profitability of grid-connected residential PV storage systems? A closer look with focus on Germany," Energy Economics, Elsevier, vol. 74(C), pages 399-416.
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    Cited by:

    1. Ladenburg, Jacob & Jensen, Kirsten Lund & Lodahl, Christa & Keles, Dogan, 2022. "Testing for non-linear willingness to accept compensation for controlled electricity switch-offs using choice experiments," Energy, Elsevier, vol. 238(PB).
    2. Russo, Marianna & Kraft, Emil & Bertsch, Valentin & Keles, Dogan, 2021. "Short-term risk management for electricity retailers under rising shares of decentralized solar generation," Working Paper Series in Production and Energy 57, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).

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    More about this item

    Keywords

    Self-consumption; Battery storage; Technology diffusion; Electricity system; Agent-based simulation; Model coupling;
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