Technoeconomic model of second-life batteries for utility-scale solar considering calendar and cycle aging

Ian Mathews, Bolun Xu, Wei He, Vanessa Barreto, Tonio Buonassisi and Ian Marius Peters

Applied Energy, 2020, vol. 269, issue C, No S0306261920306395

Abstract: The rapid proliferation of electric vehicles is creating a fleet of millions of lithium-ion batteries that will be deemed unsuitable for the transportation industry once they reach 80% of their original capacity. The repurposing and deployment of these batteries as stationary energy storage provides an opportunity to reduce the cost of solar-plus-storage systems, if the economics can be proven. We present a techno-economic model of a solar-plus-second-life energy storage project in California, including a data-based model of lithium nickel manganese cobalt oxide battery degradation, to predict its capacity fade over time, and compare it to a project that uses a new lithium-ion battery. By setting certain control policy limits, to minimize cycle aging, we show that a system with state-of-charge limits in a 65–15% range, extends the project life to over 16 years, assuming a battery reaches its end-of-life at 60% of its original capacity. Under these conditions, a second-life project is more economically favorable than a project that uses a new battery and 85–20% state-of-charge limits, for second-life battery costs that are <80% of the new battery. The same system reaches break-even and profitability for second-life battery costs that are <60% of the new battery. Our model shows that using current benchmarked data for the capital and operations and maintenance costs of solar-plus-storage systems, and a semi-empirical data-based degradation model, it is possible for electric vehicle manufacturers to sell second-life batteries for <60% of their original price to developers of profitable solar-plus-storage projects.

Keywords: Second-life batteries; Solar energy; Battery degradation; Lithium-ion; Techno-economic model; Energy storage (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (25)

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DOI: 10.1016/j.apenergy.2020.115127

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