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

See all articles by Alexander Kirmas

Alexander Kirmas

RWTH Aachen University

Reinhard Madlener

RWTH Aachen University

Date Written: April 2017

Abstract

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

Kirmas, Alexander and Madlener, Reinhard, Economic Viability of Second-Life Electric Vehicle Batteries for Energy Storage in Private Households (April 2017). FCN Working Paper No. 07/2016. Available at SSRN: https://ssrn.com/abstract=2954629 or http://dx.doi.org/10.2139/ssrn.2954629

Alexander Kirmas

RWTH Aachen University ( email )

Templergraben 55
52056 Aachen, 52056
Germany

Reinhard Madlener (Contact Author)

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
Mathieustraße 10
Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

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