A prospective economic assessment of residential PV self-consumption with batteries and its systemic effects: The French case in 2030

Yu, Hyun Jin Julie

doi:10.1016/j.enpol.2017.11.005

Cited by 65 publications

(23 citation statements)

References 36 publications

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“…The reduction of cost of PV modules has driven the economic competitiveness of PV systems [7]. In fact, the price of residential PV system is decreased of about 80% from 2008 to 2016 in most competitive markets [8].…”

Section: Introductionmentioning

confidence: 99%

Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis

et al. 2018

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Renewable energy is a wide topic in environmental engineering and management science. Photovoltaic (PV) power has had great interest and growth in recent years. The energy produced by the PV system is intermittent and it depends on the weather conditions, presenting lower levels of production than other renewable resources (RESs). The economic feasibility of PV systems is linked typically to the share of self-consumption in a developed market and consequently, energy storage system (ESS) can be a solution to increase this share. This paper proposes an economic feasibility of residential lead-acid ESS combined with PV panels and the assumptions at which these systems become economically viable. The profitability analysis is conducted on the base of the Discounted Cash Flow (DCF) method and the index used is Net Present Value (NPV). The analysis evaluates several scenarios concerning a 3-kW plant located in a residential building in a PV developed market (Italy). It is determined by combinations of the following critical variables: levels of insolation, electricity purchase prices, electricity sales prices, investment costs of PV systems, specific tax deduction of PV systems, size of batteries, investment costs of ESS, lifetime of a battery, increases of self-consumption following the adoption of an ESS, and subsidies of ESS. Results show that the increase of the share of self-consumption is the main critical variable and consequently, the break-even point (BEP) analysis defines the case-studies in which the profitability is verified.

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Section: Introductionmentioning

confidence: 99%

Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis

et al. 2018

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“…For example, German policymakers have started to reduce the compensation for surplus PV electricity exported to the public grid (Hoppmann et al 2014a), and New York redesigned retail rates to counter the redistribution of grid costs (Pyper 2018a Kubli 2018). For solar-plus-storage systems, literature analyses the economic performance of BS at particular times (Hoppmann et al 2014b, Lehr et al 2017, Uddin et al 2017, Cerino Abdin and Noussan 2018, discusses adoption dynamics (Agnew et al 2018), and evaluates the long-term impact of solar-plus-storage on the power system (Klingler 2017, Yu 2018. However, literature thus far provides only little understanding of the diffusion of PV and BS across time in the face of the complex interplay between technologies, interacting public policies, and systemic challenges.…”

Section: Introductionmentioning

confidence: 99%

Addressing integration challenges of high shares of residential solar photovoltaics with battery storage and smart policy designs

Schwarz

Ossenbrink

Knoeri

et al. 2019

Environ. Res. Lett.

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In many countries, the integration of growing shares of residential solar photovoltaics is beginning to challenge existing electricity systems. First, residential solar photovoltaics aggravates sharp system-wide load changes and, in turn, increases the need for fast-ramping generation capacity. Second, it reduces the demand for electricity provision from the grid, causing an increase in electricity prices as grid costs are recovered over smaller volumes of electricity. Battery storage (BS) mitigates the first integration challenge by flattening the system-wide load, but elevates the second by increasing self-consumption behind-themeter. In face of this dilemma, the integration of high shares of residential solar photovoltaics requires policymakers to re-design public support policies. In this article, we develop an agent-based model to simulate California's residential 'solar-plus-storage' market between 2005 and 2030 in four different policy scenarios. By applying a multi-technology, multi-policy approach, we quantify the complex interplay between the diffusion of individual technologies, several interacting policies and systemic challenges. Our results show that California's policy status quo initiated a BS uptake and, in turn, a flattening of the system, but, in the long run, will increase the electricity prices. To avoid this, we outline a policy reorientation-including a gradual phase-out of the prevailing feed-in remuneration and an introduction of fixed charges for owners of solar photovoltaic systems. Our results imply that the policy debate should be re-focused away from a single-technology single-policy perspective towards a system integration perspective. Neglecting this could not only jeopardize the affordability of electricity and climate change mitigation plans, but also put at risk the reliability of the electricity supply system. With investment costs of renewables expected to continue to decrease, this further implies that even countries without public support for renewables are likely to face challenges associated with their integration.

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“…We take the DSOs' perspectives and allow them to incentivize prosumage to reduce network congestion. This is distinct from other approaches in the literature, which focus on prosumage and examine merits and implications of self-consumption (Green and Staffell, 2017, Yu, 2018, Solano et al, 2018. We calibrate the model to power system data for Germany for the year 2015 and add proportional storage capacities to each small-scale PV unit.…”

Section: Introductionmentioning

confidence: 99%

Modeling Coordination Between Renewables and Grid: Policies to Mitigate Distribution Grid Constraints Using Residential PV-Battery Systems

2018

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Distributed photo-voltaic (PV) generation is one of the pillars of energy transitions around the world, but its deployment in the distribution grid requires costly reinforcements and expansions. Prosumage-consisting of a household-level PV unit coupled with a battery storage system-has been proposed as an effective means to facilitate the integration of renewable energy sources and reduce distribution grid stress. However, tapping its full potential requires regulatory interventions; otherwise, system costs could rise despite increasing flexibility. We analyze the effectiveness of different policy schemes to mitigate the need for distribution capacity expansion by incentivizing beneficial storage operation. Our novel top-down modeling approach allows analyzing effects on market prices, storage dispatch, induced distribution grid requirements, system costs, and distributional implications. Numerical results for German power system data indicate that required distribution grid requirements can be reduced through simple feed-in policies. A uniform limit on maximum grid feed-in can leave distribution system operators better off, even if they fully compensate prosumage households for foregone revenue. Policies imposing more differentiated limits at the regional level result in only marginal efficiency improvements. Complete self-sufficiency (autarky) is socially undesirable, as it confines important balancing potential and can increase system costs despite adding storage.

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A prospective economic assessment of residential PV self-consumption with batteries and its systemic effects: The French case in 2030

Cited by 65 publications

References 36 publications

Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis

Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis

Addressing integration challenges of high shares of residential solar photovoltaics with battery storage and smart policy designs

Modeling Coordination Between Renewables and Grid: Policies to Mitigate Distribution Grid Constraints Using Residential PV-Battery Systems

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