An intertemporal decision framework for electrochemical energy storage management

He, Guannan; Chen, Qixin; Moutis, Panayiotis; Kar, Soummya; Whitacre, Jay F.

doi:10.1038/s41560-018-0129-9

An intertemporal decision framework for electrochemical energy storage management

Journal Article · Mon Apr 23 00:00:00 EDT 2018 · Nature Energy

DOI:https://doi.org/10.1038/s41560-018-0129-9· OSTI ID:1724573

^[1]; Chen, Qixin ^[2]; ^[3]; Kar, Soummya ^[3]; Whitacre, Jay F. ^[4]

Carnegie Mellon Univ., Pittsburgh, PA (United States). Wilton E. Scott Inst. for Energy Innovation; Carnegie Mellon University
Tsinghua Univ., Beijing (China)
Carnegie Mellon Univ., Pittsburgh, PA (United States)
Carnegie Mellon Univ., Pittsburgh, PA (United States). Wilton E. Scott Inst. for Energy Innovation

Dispatchable energy storage is necessary to enable renewable-based power systems that have zero or very low carbon emissions. The inherent degradation behaviour of electrochemical energy storage (EES) is a major concern for both EES operational decisions and EES economic assessments. Here in this paper, we propose a decision framework that addresses the intertemporal trade-offs in terms of EES degradation by deriving, implementing and optimizing two metrics: the marginal benefit of usage and the average benefit of usage. These metrics are independent of the capital cost of the EES system, and, as such, separate the value of EES use from the initial cost, which provides a different perspective on storage valuation and operation. Our framework is proved to produce the optimal solution for EES life-cycle profit maximization. We show that the proposed framework offers effective ways to assess the economic values of EES, to make investment decisions for various applications and to inform related subsidy policies.

View Accepted Manuscript (DOE)

Research Organization:: Carnegie Mellon Univ., Pittsburgh, PA (United States)

Sponsoring Organization:: USDOE Office of Energy Efficiency and Renewable Energy (EERE)

Grant/Contract Number:: EE0007165

OSTI ID:: 1724573

Alternate ID(s):: OSTI ID: 1539818

Journal Information:: Nature Energy, Journal Name: Nature Energy Journal Issue: 5 Vol. 3; ISSN 2058-7546

Publisher:: Nature Publishing GroupCopyright Statement

Country of Publication:: United States

Language:: English

References (43)

Energy management strategy based on short-term generation scheduling for a renewable microgrid using a hydrogen storage system Cau, Giorgio; Cocco, Daniele; Petrollese, Mario Energy Conversion and Management, Vol. 87 https://doi.org/10.1016/j.enconman.2014.07.078	journal	November 2014
An improved charging/discharging strategy of lithium batteries considering depreciation cost in day-ahead microgrid scheduling Zhang, Zhong; Wang, Jianxue; Wang, Xiuli Energy Conversion and Management, Vol. 105 https://doi.org/10.1016/j.enconman.2015.07.079	journal	November 2015
Comparative techno-economic analysis of hybrid micro-grid systems utilizing different battery types Ciez, Rebecca E.; Whitacre, J. F. Energy Conversion and Management, Vol. 112 https://doi.org/10.1016/j.enconman.2016.01.014	journal	March 2016
Electricity price forecasting in deregulated markets: A review and evaluation Aggarwal, Sanjeev Kumar; Saini, Lalit Mohan; Kumar, Ashwani International Journal of Electrical Power & Energy Systems, Vol. 31, Issue 1 https://doi.org/10.1016/j.ijepes.2008.09.003	journal	January 2009
Lithium-ion battery cell degradation resulting from realistic vehicle and vehicle-to-grid utilization Peterson, Scott B.; Apt, Jay; Whitacre, J. F. Journal of Power Sources, Vol. 195, Issue 8 https://doi.org/10.1016/j.jpowsour.2009.10.010	journal	April 2010
Calendar and cycle life study of Li(NiMnCo)O2-based 18650 lithium-ion batteries Ecker, Madeleine; Nieto, Nerea; Käbitz, Stefan Journal of Power Sources, Vol. 248 https://doi.org/10.1016/j.jpowsour.2013.09.143	journal	February 2014
Calendar aging of commercial graphite/LiFePO4 cell – Predicting capacity fade under time dependent storage conditions Grolleau, Sébastien; Delaille, Arnaud; Gualous, Hamid Journal of Power Sources, Vol. 255 https://doi.org/10.1016/j.jpowsour.2013.11.098	journal	June 2014
Degradation of lithium ion batteries employing graphite negatives and nickel–cobalt–manganese oxide + spinel manganese oxide positives: Part 1, aging mechanisms and life estimation Wang, John; Purewal, Justin; Liu, Ping Journal of Power Sources, Vol. 269 https://doi.org/10.1016/j.jpowsour.2014.07.030	journal	December 2014
A linear programming approach for battery degradation analysis and optimization in offgrid power systems with solar energy integration Bordin, Chiara; Anuta, Harold Oghenetejiri; Crossland, Andrew Renewable Energy, Vol. 101 https://doi.org/10.1016/j.renene.2016.08.066	journal	February 2017
Convex Optimization Boyd, Stephen; Vandenberghe, Lieven https://doi.org/10.1017/CBO9780511804441	book	January 2004
Opportunities and challenges for a sustainable energy future Chu, Steven; Majumdar, Arun Nature, Vol. 488, Issue 7411, p. 294-303 https://doi.org/10.1038/nature11475	journal	August 2012
Value of storage technologies for wind and solar energy Braff, William A.; Mueller, Joshua M.; Trancik, Jessika E. Nature Climate Change, Vol. 6, Issue 10 https://doi.org/10.1038/nclimate3045	journal	June 2016
A strategic approach to recharging lithium-sulphur batteries for long cycle life Su, Yu-Sheng; Fu, Yongzhu; Cochell, Thomas Nature Communications, Vol. 4, Issue 1 https://doi.org/10.1038/ncomms3985	journal	December 2013
Batteries: Imaging degradation Shearing, Paul R. Nature Energy, Vol. 1, Issue 11 https://doi.org/10.1038/nenergy.2016.173	journal	November 2016
Limiting the public cost of stationary battery deployment by combining applications Stephan, A.; Battke, B.; Beuse, M. D. Nature Energy, Vol. 1, Issue 7 https://doi.org/10.1038/nenergy.2016.79	journal	June 2016
The impacts of storing solar energy in the home to reduce reliance on the utility Fares, Robert L.; Webber, Michael E. Nature Energy, Vol. 2, Issue 2 https://doi.org/10.1038/nenergy.2017.1	journal	January 2017
The future cost of electrical energy storage based on experience rates Schmidt, O.; Hawkes, A.; Gambhir, A. Nature Energy, Vol. 2, Issue 8 https://doi.org/10.1038/nenergy.2017.110	journal	July 2017
Electrolyte additive enabled fast charging and stable cycling lithium metal batteries Zheng, Jianming; Engelhard, Mark H.; Mei, Donghai Nature Energy, Vol. 2, Issue 3 https://doi.org/10.1038/nenergy.2017.12	journal	March 2017
Energy storage deployment and innovation for the clean energy transition Kittner, Noah; Lill, Felix; Kammen, Daniel M. Nature Energy, Vol. 2, Issue 9 https://doi.org/10.1038/nenergy.2017.125	journal	July 2017
Pathways to low-cost electrochemical energy storage: a comparison of aqueous and nonaqueous flow batteries Darling, Robert M.; Gallagher, Kevin G.; Kowalski, Jeffrey A. Energy & Environmental Science, Vol. 7, Issue 11, p. 3459-3477 https://doi.org/10.1039/C4EE02158D	journal	January 2014
Accounting for Lithium-Ion Battery Degradation in Electric Vehicle Charging Optimization Hoke, Anderson; Brissette, Alexander; Smith, Kandler IEEE Journal of Emerging and Selected Topics in Power Electronics, Vol. 2, Issue 3 https://doi.org/10.1109/JESTPE.2014.2315961	journal	September 2014
Day-Ahead Electricity Price Forecasting Using the Wavelet Transform and ARIMA Models Conejo, A. J.; Plazas, M. A.; Espinola, R. IEEE Transactions on Power Systems, Vol. 20, Issue 2 https://doi.org/10.1109/TPWRS.2005.846054	journal	May 2005
Short-Term Scheduling of Thermal Generators and Battery Storage With Depth of Discharge-Based Cost Model Duggal, Inderjeet; Venkatesh, Bala IEEE Transactions on Power Systems, Vol. 30, Issue 4 https://doi.org/10.1109/TPWRS.2014.2352333	journal	July 2015
Cooperation of Wind Power and Battery Storage to Provide Frequency Regulation in Power Markets He, Guannan; Chen, Qixin; Kang, Chongqing IEEE Transactions on Power Systems, Vol. 32, Issue 5 https://doi.org/10.1109/TPWRS.2016.2644642	journal	September 2017
Factoring the Cycle Aging Cost of Batteries Participating in Electricity Markets Xu, Bolun; Zhao, Jinye; Zheng, Tongxin IEEE Transactions on Power Systems, Vol. 33, Issue 2 https://doi.org/10.1109/TPWRS.2017.2733339	journal	March 2018
Using Battery Storage for Peak Shaving and Frequency Regulation: Joint Optimization for Superlinear Gains Shi, Yuanyuan; Xu, Bolun; Wang, Di IEEE Transactions on Power Systems, Vol. 33, Issue 3 https://doi.org/10.1109/TPWRS.2017.2749512	journal	May 2018
Joint Optimization of Hybrid Energy Storage and Generation Capacity With Renewable Energy Yang, Peng; Nehorai, Arye IEEE Transactions on Smart Grid, Vol. 5, Issue 4 https://doi.org/10.1109/TSG.2014.2313724	journal	July 2014
Optimal Bidding Strategy of Battery Storage in Power Markets Considering Performance-Based Regulation and Battery Cycle Life He, Guannan; Chen, Qixin; Kang, Chongqing IEEE Transactions on Smart Grid, Vol. 7, Issue 5 https://doi.org/10.1109/TSG.2015.2424314	journal	September 2016
Modeling of Lithium-Ion Battery Degradation for Cell Life Assessment Xu, Bolun; Oudalov, Alexandre; Ulbig, Andreas IEEE Transactions on Smart Grid, Vol. 9, Issue 2 https://doi.org/10.1109/TSG.2016.2578950	journal	March 2018
Optimizing Daily Operation of Battery Energy Storage Systems Under Real-Time Pricing Schemes Lujano-Rojas, Juan M.; Dufo-Lopez, Rodolfo; Bernal-Agustin, Jose L. IEEE Transactions on Smart Grid, Vol. 8, Issue 1 https://doi.org/10.1109/TSG.2016.2602268	journal	January 2017
Long-Term Scheduling of Battery Storage Systems in Energy and Regulation Markets Considering Battery’s Lifespan Kazemi, Mostafa; Zareipour, Hamidreza IEEE Transactions on Smart Grid, Vol. 9, Issue 6 https://doi.org/10.1109/TSG.2017.2724919	journal	November 2018
Multiobjective Battery Storage to Improve PV Integration in Residential Distribution Grids Tant, Jeroen; Geth, Frederik; Six, Daan IEEE Transactions on Sustainable Energy, Vol. 4, Issue 1 https://doi.org/10.1109/TSTE.2012.2211387	journal	January 2013
Selection and Performance-Degradation Modeling of LiMO$_{2}$/Li$_{4}$Ti$_{5}$O$_{12}$ and LiFePO$_{4}$/C Battery Cells as Suitable Energy Storage Systems for Grid Integration With Wind Power Plants: An Example for the Primary Frequency Regulation Service Swierczynski, Maciej; Stroe, Daniel Ioan; Stan, Ana-Irina IEEE Transactions on Sustainable Energy, Vol. 5, Issue 1 https://doi.org/10.1109/TSTE.2013.2273989	journal	January 2014
Coordinated Operational Planning for Wind Farm With Battery Energy Storage System Luo, Fengji; Meng, Ke; Dong, Zhao Yang IEEE Transactions on Sustainable Energy, Vol. 6, Issue 1 https://doi.org/10.1109/TSTE.2014.2367550	journal	January 2015
A Practical Scheme to Involve Degradation Cost of Lithium-Ion Batteries in Vehicle-to-Grid Applications Farzin, Hossein; Fotuhi-Firuzabad, Mahmud; Moeini-Aghtaie, Moein IEEE Transactions on Sustainable Energy, Vol. 7, Issue 4 https://doi.org/10.1109/TSTE.2016.2558500	journal	October 2016
Effect of Battery Degradation on Multi-Service Portfolios of Energy Storage Perez, Aramis; Moreno, Rodrigo; Moreira, Roberto IEEE Transactions on Sustainable Energy, Vol. 7, Issue 4 https://doi.org/10.1109/TSTE.2016.2589943	journal	October 2016
Using Battery Storage for Peak Shaving and Frequency Regulation: Joint Optimization for Superlinear Gains Shi, Yuanyuan; Xu, Bolun; Wang, Di 2018 IEEE Power & Energy Society General Meeting (PESGM) https://doi.org/10.1109/pesgm.2018.8586227	conference	August 2018
Factoring the Cycle Aging Cost of Batteries Participating in Electricity Markets Xu, Bolun; Zhao, Jinye; Zheng, Tongxin 2018 IEEE Power & Energy Society General Meeting (PESGM) https://doi.org/10.1109/pesgm.2018.8586232	conference	August 2018
Multiobjective battery storage to improve PV integration in residential distribution grids Tant, Jeroen; Geth, Frederik; Six, Daan 2013 IEEE Power & Energy Society General Meeting https://doi.org/10.1109/pesmg.2013.6672106	conference	January 2013
Optimizing daily operation of battery energy storage systems under real-time pricing schemes Lujano-Rojas, Juan M.; Dufo-Lopez, Rodolfo; Bernal-Agustin, Jose L. 2017 IEEE Manchester PowerTech https://doi.org/10.1109/ptc.2017.7981255	conference	June 2017
Calendar Aging of Lithium-Ion Batteries: I. Impact of the Graphite Anode on Capacity Fade Keil, Peter; Schuster, Simon F.; Wilhelm, Jörn Journal of The Electrochemical Society, Vol. 163, Issue 9 https://doi.org/10.1149/2.0411609jes	journal	January 2016
Joint Optimization of Hybrid Energy Storage and Generation Capacity with Renewable Energy Yang, Peng; Nehorai, Arye arXiv https://doi.org/10.48550/arxiv.1309.5832	preprint	January 2013
Factoring the Cycle Aging Cost of Batteries Participating in Electricity Markets Xu, Bolun; Zhao, Jinye; Zheng, Tongxin arXiv https://doi.org/10.48550/arxiv.1707.04567	preprint	January 2017

Cited By (2)

A deeply rechargeable zinc anode with pomegranate-inspired nanostructure for high-energy aqueous batteries Chen, Peng; Wu, Yutong; Zhang, Yamin Journal of Materials Chemistry A, Vol. 6, Issue 44 https://doi.org/10.1039/c8ta07809b	journal	January 2018
Economic drivers of wind and solar penetration in the US Bistline, John E. T.; Young, David T. Environmental Research Letters, Vol. 14, Issue 12 https://doi.org/10.1088/1748-9326/ab4e2d	journal	November 2019

Similar Records

System and method for management of electrochemical energy storage devices

Patent · Mon Jan 10 23:00:00 EST 2022 · OSTI ID:1892527

A Multi-objective Microgrid Assessment and Sizing Framework for Economic and Resilience Benefits

Conference · Mon Sep 25 00:00:00 EDT 2023 · OSTI ID:2305723

Related Subjects

25 ENERGY STORAGE

An intertemporal decision framework for electrochemical energy storage management

Citation Formats

References (43)

Cited By (2)

Similar Records

Related Subjects