Economic Viability of Second-Life Electric Vehicle Batteries for Energy Storage in Private Households
FCN Working Paper No. 07/2016
38 Pages Posted: 20 Apr 2017
Date Written: April 2017
We examine the economic viability of second-life batteries from electric vehicles for load shifting and peak shaving in residential applications. We further investigate the expected impact of a growing number of residential storage systems on the electricity market. For the analysis a simulation model of a private household with integrated PV-storage system is used that is parametrized for an electricity demand of three people and a location in southern Germany. The conditions for which investments in second use batteries are profitable are examined for three scenarios. The central scenario S2 tackles an expected net increase in the electricity price by 4% per year. Upward and downward deviations from this price trajectory are covered by scenarios S1 and S3. For scenario S1, we find that investments in storage systems are profitable for all Li-ion battery costs assumed. In scenario S2, the breakeven battery price is found to be 107 € kWh-1 , whereas in scenario S3 with the lowest electricity price growth the battery price has to be equal or lower than 73 € kWh-1 to maintain economic viability.
Keywords: E-Vehicle, Residential Electricity, Battery Storage, Load Shifting, Peak Shaving
JEL Classification: D12, Q41
Suggested Citation: Suggested Citation