Operative Benefits of Residential Battery Storage for Decarbonizing Energy Systems: A German Case Study

Natapon Wanapinit (), Nils Offermann, Connor Thelen, Christoph Kost and Christian Rehtanz
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Natapon Wanapinit: Department Energy System Analysis, Fraunhofer Institute for Solar Energy Systems ISE, 79110 Freiburg, Germany
Nils Offermann: Institute of Energy Systems, Energy Efficiency, and Energy Economics ie³, TU Dortmund University, 44227 Dortmund, Germany
Connor Thelen: Department Energy System Analysis, Fraunhofer Institute for Solar Energy Systems ISE, 79110 Freiburg, Germany
Christoph Kost: Department Energy System Analysis, Fraunhofer Institute for Solar Energy Systems ISE, 79110 Freiburg, Germany
Christian Rehtanz: Institute of Energy Systems, Energy Efficiency, and Energy Economics ie³, TU Dortmund University, 44227 Dortmund, Germany

Energies, 2024, vol. 17, issue 10, 1-21

Abstract: The reduction in PV prices and interest in energy independence accelerate the adoption of residential battery storage. This storage can support various functions of an energy system undergoing decarbonization. In this work, operative benefits of storage from the system perspective, namely, generation cost reduction and congestion mitigation, are investigated. Germany is chosen as a case study due to its strong reliance on variable renewable energy. For the analysis, an economic dispatch model with a high spatial resolution is coupled with a pan-European transmission grid model. It is shown that the system’s generation costs are highest when the assets are used only to maximize PV self-consumption, and the costs are lowest when the storage also reacts to the market dynamics. This amounts to a 6% cost reduction. Both operation strategies result in an equal level of grid congestion and infrastructure loading. This is improved with a strategy that accounts for regional peak reduction as a secondary objective. The high congestion level emphasizes that grid expansion needs to keep pace with the generation and electrification expansion necessary to decarbonize other sectors. Lastly, policymakers should enable multipurpose utilization, e.g., via the introduction of market-oriented retail electricity prices with intervention options for grid operators.

Keywords: prosumer; battery storage; generation cost; transmission grid congestion; optimization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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