Adoption of Battery Management System in Utility Grid: An Empirical Study Using Structural Equation Modeling

Laxmi Gupta () and Ravi Shankar ()
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Laxmi Gupta: Indian Institute of Technology Delhi
Ravi Shankar: Indian Institute of Technology Delhi

Global Journal of Flexible Systems Management, 2022, vol. 23, issue 4, No 8, 573-596

Abstract: Abstract Understanding the adoption of battery management systems (BMS) or energy storage systems (ESS) is essential for utilities interested in developing efficient grid systems. This research enhances the understanding of ESS adoption and its success rate in grid utility. Furthermore, this research addresses the concerns regarding which factors are essential for ESS adoption in smart grid and how they impact the adoption rate. This study describes empirical testing of a structural model based on the TOE (technology–organization–environment) theory of adoption influencing the adoption rate of the battery management system. Here, confirmatory factor analysis (CFA) and structural equation modeling (SEM) techniques were used to test the research model's validity, reliability, and model fitness based on relevant responses obtained from a questionnaire survey. This model illustrates how these factors can influence BMS adoption in the power industry positively or negatively through statistical analysis. The results indicate that for adopting ESS in a grid, knowledge about available energy storage technologies is crucial, followed by cost competition, perceived benefits of innovation, environmental awareness, the public attitude toward ESS technology, perceived social trust, and perceived risk. Based on the best knowledge of the authors, this is probably the first attempt that explicitly explains a model for the factors affecting ESS integration in the grid for developing countries like India and focused on battery adoption. Moreover, the findings of this study have important implications for energy policymakers and utility companies and have consequences for managerial practice and policymaking.

Keywords: Adoption; Battery management systems (BMS); Confirmatory factor analysis (CFA); Energy storage system (ESS); Structural equation modeling (SEM); TOE theory (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s40171-022-00319-8

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