Unlocking extra value from grid batteries using advanced models

Journal article

Lithium-ion batteries are increasingly being deployed in liberalised electricity systems, where their use is driven by economic optimisation in a specific market context. However, battery degradation depends strongly on operational profile, and this is particularly variable in energy trading applications. Here, we present results from a year-long experiment where pairs of batteries were cycled with profiles calculated by solving an economic optimisation problem for wholesale energy trading, including a physically-motivated degradation model as a constraint. The results confirm the conclusions of previous simulations and show that this approach can increase revenue by 20% whilst simultaneously decreasing degradation by 30% compared to existing methods. Analysis of the data shows that conventional approaches cannot increase the number of cycles a battery can manage over its lifetime, but the physics-based approach increases the lifetime both in terms of years and number of cycles, as well as the revenue per year, increasing the possible lifetime revenue by 70%. Finally, the results demonstrate the economic impact of model inaccuracies, showing that the physics-based model can reduce the discrepancy in the overall business case from 170% to 13%. There is potential to unlock significant extra performance using control engineering incorporating physical models of battery ageing.

Authors: Reniers, JM; Mulder, G; Howey, DA

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Elsevier
• Journal: Journal of Power Sources
• Volume: 487
• Article number: 229355
• Publication date: 2021-01-05
• Acceptance date: 2020-12-14
• DOI: 10.1016/j.jpowsour.2020.229355
• EISSN: 1873-2755
• ISSN: 0378-7753
• Language: English
• Keywords: energy trading; battery; degradation; lithium-ion; lifetime; FFR