Economic Opportunities of Power Curtailment and Peak Shaving on Residential PV-BESS Systems

Research output: Chapter in Book/Conference proceedings/Edited volumeConference contributionScientificpeer-review

Abstract

In low-voltage distribution networks, the high penetration of renewable energy generators in residential buildings has proven challenging for system operators. In response, the grid operators can reinforce the grid infrastructure or deploy battery energy storage systems throughout the network to compensate for the voltage fluctuations. Alternatively, new energy markets for ancillary services have been proposed to involve the prosumers; however, most are at medium and high voltage levels. This paper investigates, from a cost perspective, what conditions can make it attractive for individual prosumers to participate in a low-voltage ancillary service market, specifically power curtailment and peak shaving. We considered a prosumer with a 2 kWp PV system for both ancillary services, adding a 10 kWh battery for the peak shaving case. Curtailing power to comply with the maximum power exchange with the grid does not create any significant change in the LCoE of the PV system, keeping it near 0.072 €/kWh for permitted return grid powers above 1.25 kW. Scenarios closer to zero-injection increase exponentially the LCoE to 0.222 €/kWh. Using a semi-empirical ageing model, we estimated the degradation of the batteries for the cases with and without providing peak shaving, concluding that doing peak-shaving to avoid demanding more than 1 kW from the grid extends the battery life by up to 320 % while increasing its LCoS only 9.5 % when compared to a zero-consumption scenario due to the reduced depth-of-discharge and number of cycles. The results suggest that power curtailment and peak shaving can be attractive for prosumers, thus creating opportunities for ancillary services business models at the residential scale.
Original languageEnglish
Title of host publicationProceedings of the 2024 20th International Conference on the European Energy Market (EEM)
PublisherIEEE
Pages1-6
Number of pages6
ISBN (Electronic)979-8-3503-8174-0
ISBN (Print)979-8-3503-8175-7
DOIs
Publication statusPublished - 2024
Event2024 20th International Conference on the European Energy Market (EEM) - Istanbul, Turkey
Duration: 10 Jun 202412 Jun 2024
Conference number: 20th

Conference

Conference2024 20th International Conference on the European Energy Market (EEM)
Country/TerritoryTurkey
CityIstanbul
Period10/06/2412/06/24

Bibliographical note

Green Open Access added to TU Delft Institutional Repository 'You share, we take care!' - Taverne project https://www.openaccess.nl/en/you-share-we-take-care
Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

Keywords

  • Ancillary services
  • Battery Degradation
  • Residential Energy Market
  • Peak Shaving
  • Power Curtailment

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