Community Battery for Collective Self-Consumption and Energy Arbitrage: Independence Growth vs. Investment Cost-Effectiveness

• Published in: Sustainability Vol. 16; no. 8; p. 3111
• Main Authors: Pasqui, Mattia, Becchi, Lorenzo, Bindi, Marco, Intravaia, Matteo, Grasso, Francesco, Fioriti, Gianluigi, Carcasci, Carlo
• Format: Journal Article
• Language: English
• Published: Basel MDPI AG 01.04.2024
• Subjects: Aging; Algorithms; Alternative energy sources; Arbitrage; Batteries; Battery industry; Case studies; Consumers; Consumption; Electricity distribution; Emission standards; Energy industry; Energy storage; Forecasts and trends; Incentives; Linear programming; Market prices; Participation; Renewable resources; Scheduling; Sensitivity analysis; Simulation methods; Italy
• ISSN: 2071-1050; 2071-1050
• DOI: 10.3390/su16083111

Integrating a grid-connected battery into a renewable energy community amplifies the collective self-consumption of photovoltaic energy and facilitates energy arbitrage in the electricity markets. However, how much can energy independence really increase? Is it a cost-effective investment? The answer to these questions represents a novelty in the literature due to the innovative nature of the asset under consideration and the market and regulatory framework in which it is evaluated. Employing a net present value assessment, our analysis incorporated aging effects and conducts sensitivity analyses across various parameters: the number of community customers, electricity market prices, battery cost and size, and the decision to engage in energy arbitrage. Each scenario underwent a 20-year hourly simulation using an aging-aware rolling-horizon 24 h-looking-ahead scheduling, optimized with mixed-integer linear programming. Simulations conducted on the Italian market indicate that dedicating a battery solely to collective self-consumption is the most efficient solution for promoting a community’s energy independence, but it lacks economic appeal. However, integrating energy arbitrage, despite slight compromises in self-sufficiency and battery longevity, halves the payback period and enhances the attractiveness of larger battery investments. The net present value is contingent upon the battery size, customer number, and market prices. Nevertheless, if the battery cost does not exceed 200 EUR/kWh, the investment becomes cost-effective across all scenarios.