A Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units

As decentralized electricity generation is supporting grid development into the prosumer era, this paper investigates the economic viability of adding batteries to residential microgrids powered by photovoltaic units, under various electricity pricing schemes. Batteries bring the benefits of grid-st...

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Autores principales:	Iolanda Saviuc, Kevin Milis, Herbert Peremans, Steven Van Passel
Formato:	article
Lenguaje:	EN
Publicado:	SDEWES Centre 2021
Materias:	batteries distributed generation electricity pricing policy photovoltaic generation residential microgrids support schemes. Technology T Economic growth, development, planning HD72-88
Acceso en línea:	https://doaj.org/article/1bb4b0f0bcf048a3b128dc32d9e43fb4
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spelling	oai:doaj.org-article:1bb4b0f0bcf048a3b128dc32d9e43fb42021-11-20T09:32:48ZA Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units1848-925710.13044/j.sdewes.d8.0368https://doaj.org/article/1bb4b0f0bcf048a3b128dc32d9e43fb42021-09-01T00:00:00Z http://www.sdewes.org/jsdewes/pid8.0368 https://doaj.org/toc/1848-9257As decentralized electricity generation is supporting grid development into the prosumer era, this paper investigates the economic viability of adding batteries to residential microgrids powered by photovoltaic units, under various electricity pricing schemes. Batteries bring the benefits of grid-stabilization and congestion relief, and they are also becoming cheaper. The problem identified is that the main grid effectively acts as a lossless storage system, especially under the net-metering scheme, whereas using a battery involves investment costs and energy losses. This mismatch is addressed by analysing residential microgrid projects under seven tariff designs, each in seven countries of the European Union, and compare the economic viability of photovoltaic systems with and without batteries. The findings show that the conditions most favourable to batteries are given by a capacity tariff scheme allowing price arbitrage. Based on these findings, the paper discusses possibilities for further support in order to bring the economic viability of microgrids with batteries on par with that of microgrids without batteries.Iolanda SaviucKevin MilisHerbert PeremansSteven Van PasselSDEWES Centrearticlebatteriesdistributed generationelectricity pricing policyphotovoltaic generationresidential microgridssupport schemes.TechnologyTEconomic growth, development, planningHD72-88ENJournal of Sustainable Development of Energy, Water and Environment Systems, Vol 9, Iss 3, Pp 1-26 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	batteries distributed generation electricity pricing policy photovoltaic generation residential microgrids support schemes. Technology T Economic growth, development, planning HD72-88
spellingShingle	batteries distributed generation electricity pricing policy photovoltaic generation residential microgrids support schemes. Technology T Economic growth, development, planning HD72-88 Iolanda Saviuc Kevin Milis Herbert Peremans Steven Van Passel A Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units
description	As decentralized electricity generation is supporting grid development into the prosumer era, this paper investigates the economic viability of adding batteries to residential microgrids powered by photovoltaic units, under various electricity pricing schemes. Batteries bring the benefits of grid-stabilization and congestion relief, and they are also becoming cheaper. The problem identified is that the main grid effectively acts as a lossless storage system, especially under the net-metering scheme, whereas using a battery involves investment costs and energy losses. This mismatch is addressed by analysing residential microgrid projects under seven tariff designs, each in seven countries of the European Union, and compare the economic viability of photovoltaic systems with and without batteries. The findings show that the conditions most favourable to batteries are given by a capacity tariff scheme allowing price arbitrage. Based on these findings, the paper discusses possibilities for further support in order to bring the economic viability of microgrids with batteries on par with that of microgrids without batteries.
format	article
author	Iolanda Saviuc Kevin Milis Herbert Peremans Steven Van Passel
author_facet	Iolanda Saviuc Kevin Milis Herbert Peremans Steven Van Passel
author_sort	Iolanda Saviuc
title	A Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units
title_short	A Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units
title_full	A Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units
title_fullStr	A Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units
title_full_unstemmed	A Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units
title_sort	cross-european analysis of the impact of electricity pricing on battery uptake in residential microgrids with photovoltaic units
publisher	SDEWES Centre
publishDate	2021
url	https://doaj.org/article/1bb4b0f0bcf048a3b128dc32d9e43fb4
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A Cross-European Analysis of the Impact of Electricity Pricing on Battery Uptake in Residential Microgrids with Photovoltaic Units

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