Lai, CS orcid.org/0000-0002-4169-4438, Locatelli, G, Pimm, A et al. (3 more authors) (2019) A financial model for lithium-ion storage in a photovoltaic and biogas energy system. Applied Energy, 251. 113179. ISSN 0306-2619
Abstract
Electrical energy storage (EES) such as lithium-ion (Li-ion) batteries can reduce curtailment of renewables, maximizing renewable utilization by storing surplus electricity. Several techno-economic analyses have been performed on EES, but few have investigated the financial performance. This paper presents a state-of-the-art financial model obtaining novel and significative financial and economics results when applied to Li-ion EES. This work is a significant step forward since traditional analysis on EES are based on oversimplified and unrealistic economic models. A discounted cash flow model for the Li-ion EES is introduced and applied to examine the financial performance of three EES operating scenarios. Real-life solar irradiance, load, and retail electricity price data from Kenya are used to develop a set of case studies. The EES is coupled with photovoltaics and an anaerobic digestion biogas power plant. The results show the impact of capital cost: the Li-ion project is unprofitable in Kenya with a capital cost of 1500 $/kWh, but is profitable at 200 $/kWh. The study shows that the EES will generate a higher profit if it is cycled more frequently (hence a higher lifetime electricity output) although the lifetime is reduced due to degradation.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/BY/4.0/) |
Keywords: | Lithium-ion energy storage; financing; financial model; solar PV; storage degradation |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Engineering & Physical Sciences (Leeds) > School of Civil Engineering (Leeds) |
Funding Information: | Funder Grant number EPSRC EP/P022049/1 |
Depositing User: | Symplectic Publications |
Date Deposited: | 01 May 2019 11:21 |
Last Modified: | 25 Jun 2023 21:48 |
Status: | Published |
Publisher: | Elsevier Ltd. |
Identification Number: | 10.1016/j.apenergy.2019.04.175 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:145566 |