System contributions of residential battery systems: new perspectives on pv selfconsumption

Authors

Hyun Jin Julie Yu

Abstract

The market dynamics of the PV sector and coupled Li-ion batteries are likely to enhance the economics of residential PV self-consumption in the near future. When PV self-consumption systems become economically competitive, end-users will be willing to switch to PV self-consumption instead of using power from the grid. However, the large penetration of PV systems in the electricity mix provokes systemic effects (e.g. additional costs related to the integration of PV into the existing electricity system). The majority of the systemic costs concern the back-up power system associated with variable PV integration. These costs vary from one country to another because of the different energy profiles. France has higher back-up power costs compared with other regions (e.g. California) since France’s annual electricity consumption peaks occur in the winter evenings. This means that the massive and rapid integration of PV without systemic strategies can affect the energy system and stakeholders. In this context, this study proposes an innovative grid service model based on the secondary application of residential batteries installed for PV self-consumption. Our optimization model to minimize the cost of residential PV self-consumption deployment at the system level is based on the strategic utilization of residential batteries when they are not in use in the winter months. Our study identifies potential opportunities for the strategic utilization of residential battery systems in France to reduce systemic costs in line with the large diffusion of PV self-consumption in the future. Our study also identifies optimal grid service conditions and evaluates the extent to which this model can reduce PV integration efforts (e.g. balancing and seasonal back-up capacities). We performed an economic analysis to calculate the savings made in terms of PV integration costs and the benefits resulting from the secondary use of batteries. Our study then concludes with several key messages and policy recommendations to prepare the proper institutional and political strategies.