Economic Viability of Second-Life Electric Vehicle Batteries for Energy Storage in Private Households

Alexander Kirmas () and Reinhard Madlener
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Alexander Kirmas: RWTH Aachen University, Postal: Templergraben 55, 52056 Aachen, Germany, http://www.rwth-aachen.de/

No 7/2016, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

Abstract: We examine the economic viability of second-life batteries from electric vehicles for load shifting and peak shaving in residential applications. We further investigate the expected impact of a growing number of residential storage systems on the electricity market. For the analysis a simulation model of a private household with integrated PV-storage system is used that is parametrized for an electricity demand of three people and a location in southern Germany. The conditions for which investments in second use batteries are profitable are examined for three scenarios. The central scenario S2 tackles an expected net increase in the electricity price by 4% per year. Upward and downward deviations from this price trajectory are covered by scenarios S1 and S3. For scenario S1, we find that investments in storage systems are profitable for all Li-ion battery costs assumed. In scenario S2, the breakeven battery price is found to be 107 € kWh-1, whereas in scenario S3 with the lowest electricity price growth the battery price has to be equal or lower than 73 € kWh-1 to maintain economic viability.

Keywords: E-vehicle; Residential electricity; Battery storage; Load shifting; Peak shaving (search for similar items in EconPapers)
JEL-codes: D12 Q41 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2017-04
New Economics Papers: this item is included in nep-cmp, nep-ene, nep-reg and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:fcnwpa:2016_007

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