The Economic Impact of Battery Degradation Modelling Uncertainty

Nils Collath, Paul Gasper, Andreas Jossen, Kandler Smith, Holger Hesse

Research output: Contribution to conferencePaperpeer-review

2 Scopus Citations

Abstract

Battery energy storage systems (BESS) are used for a variety of applications, with their economic benefit often being the decisive factor for deployment. A multitude of physico-chemical aging mechanisms lead to capacity fade over a BESS life cycle. The models that are used to describe this capacity fade are prone to inherent model errors. Through a holistic techno-economic modelling approach, we investigate the impact of battery degradation modelling uncertainty on the economic benefit of representative BESS applications. Here, it is shown how improved parameter fit quality can reduce the resulting economic uncertainty. Furthermore, we highlight that the consideration of degradation modelling uncertainty is especially crucial when: (i) the cash flow highly depends on the available battery capacity, (ii) a fixed, e.g. warranty mandated, state of health limit acts as the threshold for battery end-of-life, (iii) long evaluation periods and low discount rates are the focus of economic evaluation.

Original languageAmerican English
Number of pages5
DOIs
StatePublished - 2022
Event2022 IEEE Power and Energy Society General Meeting, PESGM 2022 - Denver, United States
Duration: 17 Jul 202221 Jul 2022

Conference

Conference2022 IEEE Power and Energy Society General Meeting, PESGM 2022
Country/TerritoryUnited States
CityDenver
Period17/07/2221/07/22

Bibliographical note

Publisher Copyright:
© 2022 IEEE.

NREL Publication Number

  • NREL/CP-5700-84986

Keywords

  • aging
  • battery energy storage system
  • degradation
  • lithium-ion
  • techno-economic analysis

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