Rechargeable lithium ion battery storage

for solar applications

Thesis
Submitted in partial fulfillment of the requirements of
BITS F424T

By

(Pranav Sharma)
ID no. (2014ABTS0892H)

Under the Supervision of

Prof Sandip Deshmukh

BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE,

PILANI HYDERABAD CAMPUS

(i)

1
 ACKNOWLEDGEMENT

First and foremost, I have to thank my research supervisor , Prof

Sandip Deshmukh . Without his assistance and dedicated
involvement in every step throughout the process, this paper would
have never been accomplished. I would like to thank you very
much for your support and understanding over these past four
years.

I have been extremely lucky to have a supervisor who cared so

much about my work, and who responded to my questions and
queries so promptly.

Finally, I would like to thank BITS PILANI UNIVERSITY which

allowed me to undertake this research, but also for giving me the
opportunity to read research paper and helping my perspective
grow beyond books.

2
 List of Symbols and Abbreviations used

LCO - Lithium Cobalt Oxide

LFP - Lithium Iron Phosphate
LMO - Lithium Manganese Oxide
LTO - Lithium Titan ate
LTV - Linear time-varying system
PMM- Power management module
RESS- Rechargeable energy energy storage system
EV- Electric vehicle
FIT- Feed in tariff
PPA- Power purchase agreement
PV-Photovoltic
DOD-Depth of discharge
ESS-Energy Solar System
ηCoulombic- Coulombic efficiency of the cell

SLI-Starting-lighting-ignition
SOC- State of charge
SOH – State of health
BESS –Battery energy storage system
ROI- Return on investment
EPC- Engineering procurement construction
NCA- Nickel cobalt aluminum
NMC-Nickel manganese cobalt

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 ABSTRACT

Lithium ion batteries are the future in terms of energy storage system because of its
immense benefits over the present storage solutions like lead acid, nickel cadmium,
salt water. Benefits like deep cycle, more calendar life, high depth of charge,
absence of memory effect, low environmental effects, ease of reuse and
recyclability has made its favourable inn its use with the emerging technologies.

Integration of PV with the storage system as lithium ion has increased at a rapid
rate in the recent past with the development and research in the sector the the
lithium ion as a result the cost of storage per kWh is decreasing at a rapid rate
owing to more and more use of lithium ion batteries for the purpose of storage in
household PV system as well as large scale PV solar plants in future. ROI is an
important factor from an investor’s point of view, with the increased development
in the lithium ion sector, break even in terms of years are coming down making it
an attractive option for household use for storage.

The main aim of this thesis is analyzing the benefits and doing a
technical-economic analysis for the lithium ion, with factor like optimum storage
capacity, time of setup, capacity of storage, battery degradation, cost, return of
investment and break even analysis for a simple PV household system.

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 CONTENTS
TABLE OF CONTENTS

COVER ...................................................................................................................

ACKNOWLEDGEMENTS ................................................................................................

LIST OF
SYMBOLS..........................................................................................................................

TABLE OF CONTENTS..................................................................................................

CHAPTER 1-

INTRODUCTION...........................................................................................................

A. Lithium ion v/s Lead acid

B. Factors for selecting battery
C. Batteries for solar

CHAPTER 2-

THE LITHIUM ION BATTERY………………………………………………………..

A. Principle pf operations
B. Various Lithium Chemistries

CHAPTER 3-

ARE LITHIUM ION BATTERIES PRACTICAL FOR SOLAR?...............................

A. Techno-economic analysis for the viability of lithium ion batteries storage in PV

a) Introduction
b) Methodology

(b.1) Model Structure

(b.2) Scenarios

(b.3) Load profile c) Estimation of batteries lifetime

(c.1) Lithium ion battery used

(c.2) Ageing test

(c.3) Ageing test result

d) Calculation of economics

e) Assumptions and BESS costs

f) Results and analysis

(f.1) ROI Sensitivity

(f.2) Break even dependencies

5
 Chapter 1: INTRODUCTION

C hemical storage of electricity has come a long way since the discovery of Volta in
1800, which paved its way to the invention of the first battery model. In the year 1859, the
French scientist Gaston Planté, discovered the first rechargeable battery based on the
technology of the lead acid, this technology is still widely used till now.

All kinds of electric inventions like electric locomotives, electric carriages, electric
boat, were all powered by the electric batteries. The first electric carriage was made by
the scientist Robert Anderson that was primary powered by electric cells. As the
advancements in the field of the batteries were done, its use in day to day use increased,
for example, storage batteries were used in luxury cars for lighting purpose.
The first non rechargeable lithium batteries were first introduced commercially by
Panasonic in the year 1971, the attempts to make the rechargeable lithium ion batteries
were done in 1980s but were failed due to the safety concerns mainly due to unstable
nature of the lithium ion specially during the charging process. In the late 1990s the focus
of the research shifted towards developing a Lithium Ion Batteries which was
successfully accomplished by the Sony corporation.

Amongst the rechargeable energy storage systems (RESS), batteries play an important
role. There is a need for lighter and more energy dense RESS which has driven the whole
attention in this era to the lithium ion batteries. Rechargeable lithium ion batteries are far
better and superior to the present secondary storage systems in terms of the energy
density, wide temperature range, longer cycle and calendar life, lower discharge rate, fast
charging and absence of the “Memory effect”. They have therefore become a de-facto
choice in today’s consumers market for a lot of purposes like energy storage in mobile
phones, SLI and traction in electrical vehicles (EV) and for more recently in the use of
storing energy generated by renewable energy sources like solar, wind, tidal etc.

What happens with solar PV power?

While PV modules can be set up at homes, offices or on a large scale (10MW), PV solar plants
either sell it to the public utilities or come in contracts with the companies that sell the
electricity to the DISCOM’s or Central Grid by the means of Power Purchase Agreements (
PPA) or by the mean of fixed or floating FIT’s ( Feed in Tariff) .Thus the solar plant does not
sell electricity directly to the consumers, hence storage of this electricity can be a crucial
advancement for people to be independent and self sustained for their electricity use and
generation, places with rough terrain or places where the grid connectivity is not there can
benefit majorly from the storage of solar.
6
 Lithium ion v/s Lead acid
Making clean energy even cleaner:
There are a lot of environmental impact of lead acid batteries, it requires a lot of material
compared to the lithium ion batteries that means more mining and bigger environmental
impacts, they require a lot of energy to sustain that means a lot of large amount of pollution is
released into the environment and its surrounding during the production of lead acid batteries.

7
Lithium ion batteries on contrary requires very less mining because they use less raw materials,
as a result the environmental impact is less, many industries and factories are developing
methods to harness renewable energy sources to power itself so that the carbon footprints can
be decreased, an example of it is the Tesla Gigafactory. It is a new venture by tesla which aims
at increasing the production of lithium ion batteries to 35GW, doubling the present capacity of
lithium ion batteries, it’s a self sustained factory which produces its own energy by Solar PV
and use the stored energy for the production and operations.

Lithium outstands lead:

Lithium ion batteries have a higher cycle life when compared to the lead acid in deep discharge
applications, the direct advantage of this is that it can support a high number of complete
charge/discharge cycle before the capacity falls below a prescribed amount (80%).
Quantitatively seeing we would require approx. 3 times the capacity of lead acid batteries in
capacity to give the same amount of life cycle. The benefits come more in play when setting up
the batteries in area where the temperature range is large, it takes around 1000 cycles of charge
and discharge for the lithium ion batteries to drop its capacity below 80% while the later takes
around 2000 cycles for the same, that means the consumers don’t have to worry about frequent
replacements of their batteries for their household use. Less frequent replacements gives a
higher return on investments for the consumers/investors.

Lithium ion batteries have less maintenance:

Compared to the traditional lead acid batteries which have high setup, transportation and
maintenance cost because of battery voltage, water levels, overcharging and electrolyte
maintenance, which increases the overall maintenance and tracking of the lead acid batteries,
failing to do can let to high repairing cost or even replacement of the whole battery for the home
kit, on the other hand the lithium ion batteries are virtually maintenance free, allowing the
customers to benefit without the worry for damage due to deep charging.

Lithium ion batteries promote recyclability:

Lithium ion batteries can be recycled much more frequently compared to the lead acid storage
batteries, giving it a high benefit of being environment friendly, though the rate of recycle for
them is low. This is because the technology is relatively new and have to be researched upon.
As the technological advancements come the rate of recycling the lithium ion batteries will
further increased and surpass the opponent lead acid battery over a period of few years.
Recycling and disposing of lead acid batteries has a lot of negative impacts like release of
toxins during disposal like sulphuric acid etc.

Lithium batteries smart home concept:

8
Smart technology in penetrating the market rapidly (think about phones), so solar home
batteries are no exception to it. Smart home batteries give the consumer a lot of benefits like
ability of learn the weather and energy trend so that it can maximize the energy storage during
the peak insolation and provide the house/industry when solar rays are not there. This type of
concept can maximize the power storage and drastically reduce the wastage of energy when its
in abundance.

Tesla Power-wall: Smart Battery

Tesla power-wall is a rechargeable lithium ion storage battery with liquid thermal control, it is
amongst the very few companies which are their in the resident storage energy market. It is
basically a small and compact battery for home storage. First generation was released in April
2015 following an upgraded second-generation in October 2016.

It is ideal for pairing with solar panel systems specially for off-grid or homes which wants to be
independent on their energy production. The cost of setting up this is somewhere between
$8000 to $12000 for a standard 5kW battery or depending upon he usage of customer. It maybe
sounds a lot of money at the start but the can be a worth-while investment adding the financial
incentives (Tax credit, interest subsidy) over along period of time.

It is designed for day-to-day use at home and is best when paired with solar panels to store
electricity, when your solar power system is producing more energy than needed by your home,
the power-wall stores the excess electricity rather then sending it to the grid and giving you
power back at the times solar production is less or zero. Basically the power-wall helps you
balance the production and usage through the course of your day.

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 Factors for selecting the battery
There are certain specifications one should keep in mind while selecting a battery storage
system

1. Capacity and Power

Capacity is the total amount of electricity that a battery can store which is usually measured in
kilowatt-hour(kWh), though the capacity of the battery does not tell you how much electricity a
battery can provide at a given moment of time, for this you need power rating as well which is
measured in kilowatt (kW). A better with high capacity and low power rating can give you a
low current for a longer period of time while a battery with lower capacity and higher power
rating can give high amount of current for a longer period of time depending upon the type of
appliance which is being powered by the battery.

2. Depth of discharge (DOD)

A battery should always be holding some amount of charge in it before you put it again on
charging, using 100% of the battery charge damages the battery and decreases its life cycle.
So DOD is the amount of battery capacity that has can be used. For example, for a battery of
100 kWh and depth of discharge of 90% should can only use 9kWh of its total capacity, to use
it further charging has to be done beyond this point.

3. Round trip efficiency

A battery round trip efficiency usually denotes the amount of energy it can deliver as
percentage of the total energy used to store it. A battery of 5kWh with a round trip efficiency of
80% percent can only give you 4kWh of energy when it is discharging. A higher round trip
efficiency is a symbol of higher economical value on the investment.

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 4. Battery life and warranty

Solar batteries have a specific life cycle which is the no of times it can undergo charging and
discharging process because the battery starts to wear out and degrades over time, this factor
depends on the manufacturer and the brand of the battery you buy which gives you a guarantee
of how much capacity the battery will be holding at the end of its life cycle. For example, a
battery 12kW battery gives you 3000 cycles or 8 years at 80 percent of its capacity will not lose
more than 20 percent of its charge of its initial capacity/amount to store energy.

Batteries for solar:

1. Lead acid batteries: They have been in market for a long time with the disadvantage of
lower life cycle and low DOD but are relatively cheaper alternative, for owner wanting to
install a lot of capacity off-grid, it’s a good option.

2. Lithium ion Batteries: New technology in the market which has the benefit of being
compact in size, high life cycle and more DOD comes with a drawback of being a high-
investment for energy storage solution.

3. Saltwater battery: Relatively new technology in the market which does not uses heavy
metals for energy storage unlike lead acid and lithium ion but depends on electrolytes for
the purpose which increases the ease of recycling for them but disadvantage of them
includes bulky nature and since it’s a relatively new technology its still unexplored for
commercial use.

11
 Chapter 2: THE LITHIUM ION
BATTERY
Even though the lead acid batteries capture more than 60 percent of the energy storage market
till now and comes with a lot of benefits like robust, low cost, abuse-resistance, high tolerance
to overcharging and an in-build mechanism for self-balancing. There low impedance makes
them deliver a high current and makes them favorable to ‘Float Charging’ and ‘Trickle-
charging’ and can be stored almost forever without the electrolytes in them, but all this comes
with a disadvantage of being bulky, unsuitable for fast charging and short deep life cycles and
also are have undergo ‘Sulphation’ under low electrolyte condition which damages the battery
permanently also with an added risk of leakage of toxin chemicals.

Nickel Cadmium Batteries gained a lot of popularity in the market during the 90’s for the use
in portable devices like watches and camera because they are lighter than the lead acid batteries
and have deeper cycle, but exhibits the ‘Memory effect’ that reduces its capacity over time and
also has high environmental effect due to the use of cadmium.

This increases for the demand of a more compact, more deep cycle life and higher
depth of charge has increases in market, which is currently being fulfilled by the lithium ion
batteries.

Lithium ion batteries can be divided into 3 classes:

Lithium Metal ( Primary)

Lithium Ion (Secondary)

Lithium Polymer (Secondary)

The lithium metal battery is non-rechargeable while the other two are of rechargeable nature,
the primary difference between the other 2 is the use of the electrolyte it uses, while the lithium
ion batteries an organic solvent (LiPF6) while the other is a lithium polymer composite
(oxymethylene-linked polyethylene glycol) . There is no fixed chemistry for the lithium ion
batteries but depends on the use for which it is being developed, like LiNixCoyAlzO2 (NCA),
LiNixMnyCozO2 (NMC), LiMOx-, manganese-spinel based cathodes and olivine-type cathode
materials (especially LiFePO4).

(Fig 2.1)-Plot of different battery technologies with volumetric energy density (Wh/L) on
x-axis and Gravimetric energy density (Wh/kg) on y-axis.

12
As in Fig 2.1, the lithium ion battery is the smallest and the lightest amongst all the other
technologies in the market, in addition to it the lithium ion battery produces the same energy as
the NiMH cells but are almost 40 percent less weight than the same which makes them a better
alternative for storing energy and increasing the storage capacity.

A. Principle of Operation

Batteries are a collection of electrochemical cells. The main characteristic of the

electrochemical cell is the transduction of chemical energy into electrical energy and its
reverse, thus enabling rechargeable energy storage. The three main constituents of a
lithium ion cell are: an anode (which is oxidized), a cathode (that is reduced) and the
electrolyte. When the cell is connected to an external load, an electrochemical reduction-
oxidation (redox) or charge-transfer reaction transfers electrons from the anode to the
cathode. This transfer converts the chemical energy stored in the active material to
electrical energy which flows as current through the external circuit. The exchange of
electrons takes place at the electrode / electrolyte interfaces; the oxidation reaction
providing electrons to the external circuit and the reduction reaction consuming these
electrons from the external circuit. The electrolyte is the medium of transfer of the
positive ions between the electrodes. As the cell discharges current, its voltage drops. The
chemical energy released is determined by the difference between the standard Gibbs free
energy chemical potential of the two electrodes. The theoretical open circuit voltage of a
cell is measured at 25°C and at 1M concentration or 1atm pressure. However, all this
voltage is not available for use due to voltage drops within the passive components inside
the cell. The basic chemical reactions inside a LiCoO2 cell (as a representative lithium-ion
cell) are:

13
At the anode:

LixC6 + xLi+ + xe-  LiC6 (1)

At the cathode:

LiCoO2  Li(1-x)CoO2 + xLi+ + xe- (2)

Overall Reaction:

LixC6 + LiCoO2  LiC6 + Li(1-x)CoO2 (3)

Summary of lithium ion chemistries:

Chemistry Type Cathode Anode

Lithium Cobalt oxide (LCO) LiCoO2 Graphite/Hard
carbon( LiC6)
Lithium manganese Oxide ( Graphite/Hard
LMO) LiMn2O4 carbon( LiC6)
Lithium Nickel Manganese Graphite/Hard
Cobalt Oxide (NMC) LiNiMnCoO2 carbon( LiC6)
Lithium Nickel Cobalt Graphite/Hard
Aluminium Oxide (NCA) LiNiCoAlO2 carbon( LiC6)
Graphite/Hard
Lithium Iron Phosphate(LFP) LiFePO4 carbon( LiC6)

Lithium Titanate (LTO) LiCoO2 Li4Ti5O12

The cell has five regions, a composite positive electrode(Cathode), a composite negative
electrode(Anode), a separator and two electrode current collector made of copper and aluminum
respectively. The cathode and anode are separated by an electrolyte which is LiF6. Lithium
metal oxides are used for the positive electrode while petroleum coke or graphite is used to
build the negative electrode. When the discharge process occurs, the positive electrons are
readily accepted by the positive electrode while complete lithiation occurs at the negative
electrode. During the discharge process, intercalation occurs between the negative electrode and
the electrolyte and at the same time intercalation occurs between the positive electrode and LiO2
Oxide, which causes a concentration gradient.

B. Various lithium chemistries

A huge number of battery set can be developed depending upon the anode and cathode set
depending upon the utility and characteristic needed for the battery, following are the major
types of lithium ion batteries:

1. Lithium Cobalt Oxide (LCO): Introduced by Sony in the year 1990, this type of
batteries was majorly used in portable devices like laptops and mobile phones, they came
the benefit of high specific energy (Wh/kg) which provided with a satisfactory runtime. It
came with certain drawbacks like only 500 to 700 deep cycle and a low calendar life, low
specific power and inability to fast charging. Charging at over 1C caused the cell to
14
 overheat and reported safety issue’s due to this, the cell even had porr thermal stability
and reported number of accidents.

2. Lithium Manganese oxide (LMO): This type of cell has integration of lithium ion in
manganese ‘spinels’ and has lithium manganese oxide as the cathode which improves the
ion flow in the electrode due to 3-D structure of the spinels resulting in lower internal
resistance and high current flow. This type of battery had same energy density as LCO
but had more thermal stability and higher rate of charging and discharging and allowed
faster charging but with a lower cycle and calendar life. This type of cell also exhibited
high specific power.

3. Lithium Nickel Cobalt Aluminium Oxide (NCA): The NCA cell has a higher specific
energy and specific power and a longer cycle life, it has a lower voltage compared to the
LCO cells which gives it better safety characteristics.

4. Lithium Nickel Manganese Cobalt Oxide (NMC): These types of cells can be
customized for either high specific energy or high specific power, but both can’t be
possible. These type of cells combines nickel (high specific power) plus manganese
(Spinel structure for low internal resistance), NMC type cell have high cycle life and
good safety characteristics. NMC and NCA types of sells are most commonly used in
power tools, electrical vehicles.

5. Lithium Iron Phosphate(LPF): LFP type cell were discovered for use in 1996, these
type of cells are safest lithium ion cells, with high thermal stability, high cycle and
calendar life, high tolerance to abuse, high current rating and longer cycle life amongst all
the other type of lithium ion cells. The major drawback when it comes to LPF type cell is
the low energy density and low voltage, reduced performance at low temperature, since it
has high current rating self discharge rate for this is highest in these type of cells.

6. Lithium Titanate (LTO): This type of cell combines lithium titanate as an anode
material as compared to other types of cells which has graphite as anode material,
combination of LCO, LMO, LFP can be used as the cathode for this. LTO provides with
high power rating and much higher cycle life(10,000) , due to its low voltage its gives
immense safety and reduces the risk of fire and explosion, these types of cells have high
charging rate at even 10C and operates at a wide temperature range giving excellent
performance even at low temperatures, the only drawback of these type of battery is very
low specific energy as compared to other lithium ion batteries but are still comparable to
the nickel cadmium batteries.

15
 Chapter 3: Are lithium ion batteries
practical for solar storage?

Techno-economic analysis for viability for lithium ion cell for

energy storage with PV in:

1. Introduction

Most of the countries and government all over the world are aiming to reduces the CO2 emission
by the year 2030 by almost 50% percent of the levels in 2000. Cutting back on energy is a
possible solution for this but it hampers the economic growth of the country and has severe
negative impact for the government, renewable energy resources (RESS) has been a promising
way of reducing the carbon emission and fulfilling future supply of sustainable energy
production in the recent future with technologies like photovoltics, wind energy, hydro.
Focusing on batteries for PV, we can find several technologies, such as Pb, Li-ion, NaS, and
Zebra. Today, the costs of best in class Li-ion batteries are following a strong reduction in cost,
$300/kW, as compared to the upfront cost of $1000/kWh 12 months prior. A 20%–30% yearly
cost reduction could bring conventional lithium ion batteries at a commercial/utility scale to the
point of mass adoption potential before 2020. In this regard, a turning point in the cost reduction
of batteries would be $100/kWh, which would lead to cheaper ESS (Energy Solar System).
Reliable battery storage solutions can range from $500 to 1000/kW h. More R&D and
Innovation are needed in the years to come (5–10 years) to reduce costs and to increase the
added value of products through innovations, leading to higher performances and advanced
solutions.

Balancing the overall energy demand and power supply to all the point on the grid has
become an important factor, with the deployment of the new technologies like lithium ion
batteries in the battery energy storage system and decreasing prices with increased commercial
viability has made them the most favorable choice for the industry. We use a multi-parameter
economic model which allows profitability estimation for BESS with sensitivity to both
technical and economical parameters, such as battery end-of-life criterion, battery ageing
behavior, electricity prices and storage investment costs. Using this model, we derive a clear
picture of system profitability with dependence to all major influencing parameters. Applying
the baseline ageing characteristic and given the market price trends, system profitability is
expected to be reached in the very near future. Evaluations depend on different scenarios of
electricity price and economic input data, battery size and storage replacement strategy.
Furthermore, we also analyze the particular operational wear of batteries together with its
technical and economic consequences. Finally, we provide and analyze ROI curves achieved for
a residential customer with a ‘solar-plus-battery’ system and the conditions needed to surpass
the break-even point in different scenarios.

16
The increasing contribution of PV to the global and regional power mix has caused a numb-
beer of fundamental challenges, which can largely be addressed by the addition of energy
storage.

 – PV electricity is produced only during the day; energy is often needed during the night.
The ability to store energy during the day for use at night is beneficial.
 – PV is an intermittent and unpredictable generation source. Storage allows fluctuations
in supply to be reduced.
 – Off-grid PV is not connected to the grid, and therefore, the only way to use electricity
at night is through storage.

2. Methodology
We have developed a modelling tool, which allows an operation specific economic
analysis of battery storage systems. The model not only reflects a detailed battery internal
parameter evolution over time – namely state of charge (SOC) and ageing related state of
health (SOH) development – but also it allows for an annuity based revenue calculation
with all economic aspects of a PV-household application. We apply this model to show
different potential scenarios for business case evolvement of PV-storage systems in the
German market and conclude which scenarios could economically promote households to
invest in energy storage systems.

2.1. Model Structure

The model structure used in this study is illustrated in Fehler! Verweisquelle konnte nicht
gefunden werden.: For a given scenario, definition of specific parameters for system operation
and economic calculation are deduced. The system operation block replicates the PV-storage
coupled system power flow based on load and generation profiles considering system
restrictions. It determines battery load and reflects battery performance with dependence on the
storage operation strategy. With the battery load the particular degradation of capacity is
calculated which alters the systems performance and – after long term deterioration – may infer
in replacement of the battery to recover system performance.

17
The economic calculation block of the model is based on the residual load and determines both
revenue achieved and financial losses. Together with the costs of investment, maintenance, and
battery replacement, the overall evaluation parameters like LCOE and ROI are calculated.
These financial key data can be optimized by changing the system dimensions as well as the
operation strategy.

2.2 Scenario
This in this case we assume a solar PV system integrated with a battery energy storage system
(BESS), which includes a customer with a PV system on rooftop for generating electricity, a
battery storage system which aims which stores the energy produces by the PV, the aim of this
model is to reduce the cost of utility bill for the customer by installing battery storage kit which
will be successful if the cost of saving on the bill will surpass the initial investment over a
certain period of time ( say 5 years). The aim of the kit is to reduce the electricity from the grid
and becoming self sustained on the energy produced by PV and eventually becoming completly
off from the grid over the period of time.

2.3 Load profile

We have taken the load profile of a private residential place in Germany as per the framework
of Bundesverband der Energie- und Wasserwirtschaft (BDEW), on average the electricity
consumption of an average household was 4,400 kWh per year.

As per the generation profile, we use the data of the typical rooftop solar panels which is
acquired from study a rooftop solar panels system in Germany and recorded with one-minute
resolution. The degradation of PV (Usually 1% per year) is neglected which cause small
decrease in the power output of the panels. The economic power output the solat panel was
assumed to be 4.4kWp.

PARMATER NAME VALUE

Energy efficiency 95%

Self-discharge 6% EN/ Month
Calendar life 12-15 years
Cycle lifetime 4000-6000

INPUT VARIABLE VALUE

18
 Electricity 4.400kWh/year
consumption
Photovoltaic peak 4.4kWp
power
Maximum Grid- 0.6*P PV peak=
Feed in 2.64kW
Battery Capacity 4.4kWh (SoH =100%)

we consider a lithium-ion battery system by taking into account the cost and technical data of a
typical energy storage system, used in PV-household applications. The power flow of the BESS
considers system limits, such as maximum rated power and current energy content which may
result in reduced load or supply from the battery. The operation strategy used in this study
estimates a maximum possible self-consumption: The energy storage will store all power
produced by the PV system, which exceeds consumption. As such, a larger battery capacity
leads to higher rate of self-consumption. Regarding the investment costs the battery capacity
should be limited. Waffenschmidt [1] proposes the sizing of 1:1 of storage capacity to PV peak
power, which leads to the battery capacity of 4.4 kWh used in this paper as baseline scenario.
With this battery size the storage has to achieve about 275 equivalent full cycles (EFC) in one
year summing up about 5500 EFC over the depreciation period of 20 years. Furthermore, the
model includes battery’s self-discharge behavior of 6 % per month related to the nominal
storage capacity EN[2] and energy efficiency of 95 % [2] shown in Table 2. For simplicity, we
model the PV- battery system coupling via a single power electronics device. The power-
dependent efficiency of the power electronics can be estimated using equation [3]:

Applying a parameter set of p = 0.0072 and k = 0.0345, the efficiency curve fits well to
measurements obtained on high efficiency inverters [5][6].

3. Estimation of battery lifetime

The lifetime analysis of the battery takes into account the following two factors, calendar
ageing and cyclic ageing. In case of cyclic ageing, each cycle contributes to the capacity fade
which is dependent on the depth of discharge (DOD), while the calendric life cycle. Ageing
parameters shown in table are based on [7] [8] [9] [10] [11] [12]and consideration of various in
house experiments undertaken on lithium-ion battery cells. Ageing of the battery/cell strongly
depends on the type of the lithium chemistry, we take into account the scenarios which later the
ageing process strongly :

Normal ageing: ‘Normal ageing’ (Baseline scenario): Calendric lifetime of 15 years and 6,000
equivalent full cycle lifetime are assumed. Cycle ageing is determined based on the Wöhler-
curves method, as presented by Rosenkranz et al. [13]. This assumption leads to lower
degradation by small cycles when compared to larger cycles. With this ageing assumption,
calendric ageing overwhelms in the solar-plus-battery application. This reflects a typical
19
assumption found in literature disregarding cyclic ageing as a whole and only taking into
account calendric ageing.

2.Strong ageing: Assuming a calendar lifetime of 12.5 years and 3,000 equivalent full cycle
lifetime. Same energy throughout is assumed to lead to similar ageing effects, regardless the
cycle depth.

In the figure shown, the degradation of the battery for PV household use shows the decrease in
battery SOH which cause the capacity to fade away, due to decreased capacity the self
consumption rate of the battery decreases which leads to low yield on profits for the system. For
comparison purpose low self consumption of PV-household without the battery system is also
shown in the figure, SOH van be defined as the capacity fade for the battery over the initial
capacity. An SOH of 0% percent shows that the battery has zero capacity to store energy in it.
Usually an SOH below 80% is considered as the point of replacement of the battery for the
system, SOH fall below 80% needs replacement and further adds up the replacement cost,
following are the two factors which makes the needs for replacement if the SOH falls below 80
percent:

1. Strong increase of internal resistance and therefore decrease of battery efficiency

2. Strong decrease of usable battery capacity

In general, we know that battery degradation takes place, this usually governed by the a lot of
factors like age of the battery, frequency of use, plus battery degradation is governed by a lot of
factors like elevated temperature, high state of current, use of different rates for
charging/discharging. These factors are collectively known as ageing factors, when taken into
account these factors cause a long linear accelerated degradation of the battery.

3.1 Lithium ion used in ageing test

During the study, 3A h 18650-type cells were used, which were basically NCA types cell,
which were separated by a polyethylene separator, sandwiched between an aluminum collector
at the anode and a copper foil at the anode, all of which immersed in an electrolyte solution, for
which the manufacturer defined a charge /discharge rate of 1.2C and 0.3C and an instantaneous
charge/discharge rate of 5C and 1.5C respectively, at this given standard range the internal
resistance at 25C were 36m.

20
3.2 Ageing Test
The ageing tests are divided into two groups: storage and cycling. Storage tests entailed
storing the cells at different SOC and temperature combinations. To adjust the SOC to the
required level, the cells were first discharged at a 1 C constant current discharge rate to a
cut-off voltage of 2.5 V using a commercial cell cycler (Bitrode MCV 16-100-5).
Subsequently, the cells were allowed to rest for 3 h before being fully recharged according to
the manufacturer’s recommended charge protocol of constant current charge of 1 C until 4.2
V is measured and then a constant voltage of 4.2 V until the current fell below 0.15 A.
Following the completion of charge, the cells were again allowed to rest for 3 h prior to
being discharged at 1 C constant current for 6 min s, 30 min or 48 min which brought the
cells to 90%, 50% or 20% SOC respectively. To control cell temperature, the cells were
placed in a Vötsch thermal chamber at either 10 °C, 25 °C or 45 °C. The nine combinations
of temperature and SOC were studied in this work, with three cells tested per combination.

Cycling tests were all carried out at 25 °C with one of two depths of discharge 30% or 80%
and one of three discharging rates 0.4 C, 0.8 C or 1.2 C. All cycling tests were limited to a
charging rate of 0.3 C for safety (i.e., to within manufacturers limit for continuous charging).
Cell cycling was achieved using a commercial cell cycler (Bitrode MCV 16- 100-5) and the
ambient temperature was controlled using an Espec thermal chamber. Again, three cells are
tested for each depth of discharge and discharging rate combination.

3.3 Ageing Test Result

21
Capacity loss (from an initial 3 A h at 25 °C and resistance rise (from an initial 36 mΩ at 25 °C
and 50% SOC) for storage and cycling tests are presented in Fig. 4 for 550 days of storage and
3800 A h of cycling. Results show that storing at progressively higher temperatures cause
higher capacity fade and resistance rise. Resistance rise was highest for high SOC storage,
although storing at 50% SOC was found to be better than at 20%. Despite higher discharge rates
and DOD(=ΔSOC) globally exhibiting more degradation, the almost flat surfaces for cycle
ageing capacity loss and resistance rise suggests that capacity loss and resistance rise are
indifferent to (or lacks strong correlation with) the discharge current rate and DOD.

4. Calculation of economics
The major factor to determine the profitability of the system is determined by its ROI:

(ROI) = Return/Investment = Avoided cost with storage –Annual cost – Maintenance Cost

Initial Investment for storage + Storage replacement

22
In our case the investment is not only restricted to the initial cost of the storage system but
rather we have used the maintenance cost as well to get a better picture of the overall
investment and the ROI is this giving to us, the integration of the replacement cost is important
as it gives us a better picture for the battery’s degradation over time.

5. Assumptions and BESS costs

Depending on the different economics and government policies, interest rates various to a great
extend for our assumption we have taken into account 4% interest rate with an inflation rate of
2% which makes the net interest rate as 1.96. We take into account the two scenarios:

a. Constant electricity price with increase due to inflation

b. An increase of the prices by extrapolation by seeing the historic data of 10 years.

For case a, let the fixed price we have taken into account is say 30ct/kWh and for case b,
extrapolating the data for German household for year 2006-2016 the rate of increase per year is
3.8 %. The tables for general economic parameter and battery economic parameter are given as
follows:

Germany gives a feed-in-numeration of 12.62 c/kWh, the wages at this price are fixed for 20
years and are given to all the PV household installed after the year 2015. The period of 20 years
is chosen as the period for the life of the BESS, as PV system degrades after this point.

Fig. 4 shows the assumed costs of the BESS components of different studies in two scenarios:
The minimum prices scenario for the storage and power electronics is based on own
investigations on current prices of household BESS. The price trends of [18] are used to
extrapolate the prices to the year 2034 as the limit of simulations. The maximum prices scenario
relates to an analysis of the current prices of household BESS of the Bundesverband für
Solarwirtschaft e.V. (BSW) [14], whereby the annually decrease of 4.96 % is assumed
considering [13]. The installation cost accounts for 5 % of the whole investment price. Annual
operation and maintenance accounts for 1.5 % of the overall investment cost per year [10] given
in Table 4.
23
4 Results and Analysis

3.1 ROI Sensitivity:

The following figures shows the ROI sensitivity to electricity price and storage, figure shows
the shows the ROI curves for 0% percent and 10 % for a battery capacity of 4.4kWp. The part of
the graph left to the 0% curves shows the profitability assuming the storage and production
price, assuming the current scenario, the current situation fetches a loss with a negative ROI of -
-1.46 %, for given electricity price, profits maybe made if the storage price are below 450 euros,
which maybe not be the case for break even / payoff till the year 2018. Considering the current
storage prices and an increase of the electricity price with only inflation adjusted, the battery
storage setup will be a profitable investment from 2017.

24
Fig 6 shows the sensitivity of ROI with respect to the storage capacity installed, it shows that
4.4kWp is the optimal storage capacity for the BESS, as we increase the capacity of the battery
the to 6.6kWp the benefits through high consumption rate does not surpass the higher initial
investment cost for the storage, for the batteries with capacity below 4.4kWp yields a low profit
because of very less self-consumption rate. The storage capacity for our underlined case seems
to be the best as per the trends for the increase the storage and electricity tariff.

Other factor comes into play when considering the cost is the battery replacement, factors like
ageing of the battery and ROI plays an important role for replacement, fig 7 and 8 shows the
variation of ROI with respect to the ageing and the batteries SOH.

25
In the fig 7, it can be seen the replacement of the battery at SOH= 80% (Remaining Capacity
has reached 80 percent of the rated capacity), then replacing the battery at SOH=85% or even
90%. The enormous impact of ageing behavior on the business case for PV-Storage system
becomes evident when looking closer to Fig. 8: switching between normal (baseline scenario)
and strong ageing scenarios alters business case calculations significantly. At an electricity
price of 30 CT / kWh battery parity can be reached at storage prices as little as 300 €/kWh
assuming the strong ageing or at 450 €/ kWh assuming the normal ageing scenario. The last
mentioned ageing-optimistic scenario would allow for a self-contained profitable energy storage
system in supposedly three years from now. This underlines, that the ageing behavior has a
significant effect on business case calculations and highlights the need to improve on battery
cycle stability.

4.1 Break even dependencies

Break even for the investment is a most important factor in case for an investor to put their
money in it, early the break even reaches, early the investment becomes fruitful for the
investors point of view, incorporation of the battery installation at the time of the setup with the
PV installation plays an important role because of the storage grants and the discount offered by
the manufacturer if installing both by the same EPC contractor. The numbers below the small
arrows indicate the quantity of storage replacements necessary to yield 20 years of operation
under given conditions. Storage replacement costs also provoke the ‘wave shape’ found in all
plots of Fig 9.

We can see that the scenarios with maximum storage price development do not reach the break-
even point in the investigated period. Considering the scenarios with the minimum storage price
development, break-even is reached for both before 2023. In case of increasing electricity prices
with a minimum storage price development the ‘battery parity’ with small ROI rates has been
achieved already.

26
In Fig. the break-even curves are shown for the baseline scenario assuming normal ageing and
the scenario with strong ageing behavior. If this optimistic ageing assumption holds true, the
break-even will be passed, when realizing the storage investment in 2021, 6 years after a PV-
rooftop installation conducted in 2015. Due to this fact and the similar observations in Fig. we
can conclude that the cycle stability is the key factor to obtain benefit with a solar-plus-battery
system.

On the one hand, the considered cycle lifetime of 3,000 for the battery lifetime estimation in the
strong ageing scenario represents the state-of-art declared in the data sheets of lithium-ion
battery systems. Because of the manufacturer’ guarantee, we conclude that this value is a
conservative estimate. The normal ageing in the baseline scenario with a cycle lifetime of 6,000
is therefore both more realistic and more profitable. On the other hand, lithium-ion chemistry
with a lithium titan ate oxide anode (instead of graphite) and lithium iron phosphate cathode
(LTO-LFP) promise more than 20,000 cycles to be achievable even with higher current rates
than expected in home storage applications [14]. Considering the 5,000-6,000 EFC to be
realized by the storage in the baseline scenario: A LTO-LFP battery would not reach the end-of-
life criterion of SOH = 80 % in the investigated period. Such storage systems might be
economically favorable over other lithium-ion chemistry and in only a few year time
potentially allow for a feasible business case in the German market.

27
 Chapter 4: Battery management:

State od charge (SOC) and State of health (SOH) are the two main parameters to define a
battery state of function (SOF) for a battery energy storage system. SOC is the ratio of charge of
the battery which can do work to the maximum charge obtained when the battery is completely
charged, SOC is a thermodynamic parameter of the battery which basically defines the potential
energy stored in the battery, factors like ageing, irreversible chemical and physical reactions
during the lifetime of the battery deteriorate the battery over the period of its lifetime. SOH can
be defined as the state of the battery with respect to its state of beginning.

A. Cell capacity:
Cell capacity can be defined as the amount of charge available in it for discharge, it depends on
a lot of factors like the amount of active electrolyte, the surface area of the electrode and is
expressed in the unit of ampere-hours (A-h), the cell capacity depends on the following factors:

1. Discharge current and discharge time

2. No of charge & discharge cycles
3. Inner cell temperature
4. Storage time (Self-discharge)
5. Voltage at end of discharge

In defining the cell capacity, its usually narrows down to 3 factors, Inner-cell temperature (T),
discharge current (I), Discharge time, the value of voltage of the end is usually described by the
manufacturer and is controlled by the power electronic devices.

Cell Capacity = CQ = CQ ( I,T)

The cell capacity is always a decreasing function of the discharge current, if the discharge rate
is low it means higher the charge delivered, high discharge current means low cell capacity.
Higher electrolyte temperature results in higher cell capacity but also decreases the overall cell
life in general. With the battery storage system the manufacturer specifies the discharge current
rate and time so that the battery can perform as per its full design capacity. Rated or nominal
capacity is different from the physical or theoretical capacity of a cell, which is dependent upon
the active material in the cell and is based upon the total amount of energy that can be stored or
extracted from the cell when manufactured. It can be reached by discharging the cell with a very
small current at the specified temperature. The measured or standard capacity is the amount of
energy that the cell delivers under the manufacturer-specified standard conditions, anytime
during the life of the cell, and usually decreases with cell ageing. The standard capacity may
even be higher than the nominal capacity initially but gradually reduces with cell ageing. The
practical or actual capacity is the amount of charge a cell delivers under any given temperature
and discharge rate during its life.

The ratio of cells actual capacity to its nominal capacity is called the cell
efficiency factor, the actual capacity of the cell maybe more than the nominal capacity but
anyhow it can never be more than the theoretical capacity, therefore the physical and the
nominal capacity of the cell is fixed at the manufacturer’s end by the cell chemistry, standard
and actual capacity may change over the life cycle.

28
 Visual representation of the different cell capacity

B. State of charge (SOC)

SOC is defined as the “Percentage of maximum charge present inside a lithium ion battery
(LIB), during a discharge process its SOC can be defined as:

𝒕
SOCT= SOCO – 1/C(∫𝟎 𝒊𝒅𝒕

Where SOCT is the charge at any given moment during the discharge of the battery, SOCO is the
𝑡
initial charge on the battery after the discharge process and ∫𝑜 𝑖𝑑𝑡 is the the integral of discharge
current during the process, C is the cell capacity, depending upon the manufacturer C is defined
as the “nominal capacity” or sometimes as “rated capacity.

A SOC system is shown in the figure, the battery/cells are connected in either in series or in
parallel, an analog to digital converter is added to convert the analog signals like voltage,
temperature into digital signals, based on the following data, microcontroller/microprocessor
estimates the SOC of the battery using the predefined algorithms, RAM (Random Access
Memory) and ROM (Read Only Memory) are used by the SOC. The ROM stores basic data
such as amount of discharge, charge/discharge efficiency. ROM also stores algorithm for SOC
if the SOC is calculated using the EMF. RAM stores historic data such a no of charge/discharge
cycle. Calibration is also important for the calculation of the SOC when current integration is
done, because inaccuracy in current measurements accumulates over time and causes SOC
Estimation errors.

29
 C. Methods of SOC Determination
We have defined the SOC for the battery but merely defining it is not enough, SOC of a battery
cannot be accurately calculated but approximate value’s of it can be calculated using the
following methods:

1) Discharge test:

The most dependable method of SOC evaluation is to conduct a complete discharge of the
battery cell to determine its remaining capacity under controlled conditions. This test also
frequently involves a consecutive recharge and is considered to be too time consuming. It also
leads to interrupting the system where the battery cell is installed.

2) Ampere hour counting:

Most common and widely used method for this is the ampere hour counting, in this method the
current into or from the battery is measured during the charging/discharging, if the initial SOC
is known to us, we can use the following equation to find the current SOC:
𝒕 𝒕
SOC = SOCO – 1/CQ( ∫𝟎 (𝑰 (𝝉) − 𝑰p(𝝉))d𝝉 = SOCO – 1/CQ(∫𝟎 𝜼COULOMBIC I ()d)

Where CQ is the rated capacity, I s the external circuit current, IP is the loss in the current due to
internal reactions and the heat generated inside the battery during the charge or discharge
process, COULOUMBIC is the coulombic efficiency of the cell, the following methods have some
drawbacks associated to it:

1. Initial SOCO of the battery should be known with high accuracy, the initial SOCO of the
battery is wrong, then the calculation of the present SOC would be incorrect.
2. Finding the value of the current that goes into the circuit (I) and the value of current lost
due to invariable reasons (Ip) is hard to determine.

To avoid the following drawbacks, SOCO of the battery can be set to zero, the battery should be
completely discharged before doing the experiment and calculations, constant current losses can
be assumed for every charge/discharge cycle so as to fix the value of the coulombic factor. For
30
Example, a factor of 1.3 is assumed for the nickel cadmium batter, a factor of 0.95-1.1 is
assumed for the lead acid batteries.

3) Open circuit voltage measurement

Since the SOC in the lithium ion battery is directly related to the embedded active material in it,
Open circuit voltage is a perfect parameter for determination of SOC of the battery after the
battery gets sufficient time to reach the balance. Usually a linear relationship exist between the
OCV and the SOC of the battery, this isn’t true for all types of battery, lead acid batteries shows
linear relationship, but most of the lithium ion batteries does not show a linear relationship, it
majorly depends on the capacity and the material used in the battery.

This is a rather precise way of calculating the SOC of the battery but it has
certain drawbacks, for most of the batteries it takes a lot of time for the voltage to reach the
equilibrium condition. For example, low temperature operated C/LiFePO4 takes about two
hours to reach the stable state. For application the EV hybrid vehicles, this method is only
applicable when the cars are parked for a long period of time but has a lot of application when it
comes to energy storage integration with the solar/PV technology.

4) Internal resistance management

This approach uses battery current and voltage to calculate the internal resistance of the battery,
voltage measured during the current change for a very small period (< 10ms), the ratio gives us
the DC resistance if the battery, small time frames of 10ms and less are used so as the effect of
the acid diffusion and transfer reaction are not reduced in the results. For longer durations the
value of internal resistance calculated has error’s, this has a high accuracy and adaptability for
SOC calculations only for the end period of discharging and also due to its low value milli-
ohms) the accuracy of calculations is hard to obtain. Due to this shortcomings, the DC
31
resistance value is not used for calculations of the battery SOC.

5) Electrochemical Impedance Spectroscopy

EIS have been used extensively for to study the electrochemical reactions for the cell and for
the estimation of the SOC of the battery, to predict the SOC for the LIB using Electrochemical
Impedance Spectroscopy a proper electrochemical model is necessary to implement, the EIS
then estimates the battery impedance using the capacitance and inductance over a very wide
range of frequencies. A non-linear least square method fitting method is used under a different
state of charging values to calculate the model’s impedance. The major drawback of the method
is that EIS results are difficult to reproduce if system is not in a steady state condition. Also,
impedance curves are strongly influenced by temperature effects; hence the best utilization of
this method is with battery cells in environments with temperature-control. This method has
been found more promising for SOH determination rather than for accurate SOC determination.

32
 D. State of health (SOH)

Defining clearly the SOH of the battery is crucial, full charge capacity (FCC) can be less than
the designed capacity (DC) due to ageing of the battery, where FCC is the DC of the new
battery kit. SOH of the battery can defined as the ratio of the FCC of an aged battery to its DC.

Ageing as we know depends on a lot of factors and variables like stress the battery has
undergone (No of charge/discharge cycles), period of rest, normal walking cycle, internal
reactions and temperature etc.

E . Methods of Determining SOH

Determination of SOH is closely related to the calculation accuracy of the SOC, following are
the two approaches for calculation of the SOH:

1) Using battery impedance measurement

The ambient temperature affects the battery impedance, especially at low frequencies. In
environments of uncontrolled temperature, the solution is to use high frequency impedance
measurement (between 10 and 100 Hz) for determination of the ohmic resistance, or its
reciprocal which is the conductance. In this frequency range, the influence of temperature is
less than 10% of the absolute impedance/conductance value [67]. At frequencies above 10
Hz, the impedance parameter is close to the ohmic resistance of the battery cell.

2) Using Internal resistance values

Ohmic Resistance can be defined as :

IR = V/I (Time < 10ms)

Similar to finding the SOC of the batter, when change is resistance is measured is measured for
the time period of less than 10ms, ohmic resistance comes to the play.

F. State of function (SOF)

The state-of-function is the figure of merit used to describe the ability of the battery to perform
a specified function or duty, which is relevant for the functionality of the system powered by
the battery. It is defined as a function of the state parameters (SOC, SOH, temperature) and the
short- term charge/discharge history [8–9]. Some examples of SOF are the battery’s cranking
capability, i.e. the ability of the battery to supply the minimum voltage required for the
specified duration of time to crank the combustion engine; or the battery’s charge acceptance,
i.e. the ability of the battery to accept a charging current for a specified duration of time [75].
Although a number of authors have defined the SOF as a function of the SOC, SOH and
temperature, major journals/ associations have defined it to be the product of SOC and SOH, as
the ratio of the available battery charge to the rated battery capacity.

33
Chapter 5: Grid tied photovoltaic and
battery storage system with electricity tariff
for peak shaving.
1. Introduction

The conventional natural resources are depleting rapidly and there is a urgent need for more
greener and efficient energy power plant, solar has proved to play in vital role for shifting from
coal to renewable energy resources, with highest share in the renewable market, photovoltaic
have proved that it is the technology for the future. Increased solar penetration have proved to
decrease the green house emission, increased energy dependence and has improved the
reliability for the structure but as we know it comes with disadvantage of solar irradiation and
change in the temperature affect the output of the PV modules. The use of battery integrated
solar for commercial and residential are expected to become widely used for peak shaving and
cost cutting.

Battery energy storage systems(BESS) are getting more attention in the

recent times because of the need to store the energy produced by the renewable energy
resources like tidal, hydro, solar etc. Hence it is vital to analyze the need for investments and
profitability in the storage system. The idea behind the energy arbitrage is take advantage of the
daily difference in energy prices in order to store the energy in the battery during low demand
and us it at peak time when cost per unit is more. Smart-grid technologies, such as smart meters,
have allowed for dynamic pricing. Time-of-Use (TOU) pricing is an example of dynamic
pricing that has been progressively adopted, whereby electricity charges are fixed for a
particular time period on an advance or forward basis. Such systems usually offer two or three
price levels (e.g., “off-peak”, “mid-peak”, and “on-peak”), which is determined by the time of
day. By storing energy during low off-peak price periods, consumers and businesses may
continue to operate at the optimum levels even during peak times and avoid paying the high
TOU rates by utilizing the stored energy [21]. In addition to TOU-based charge, electricity bill
may include demand charges. It is defined as a charge that is determined by using the maximum
demand (or peak demand) that is occurring during a certain billing period [22]. The demand
charge is billed at a fixed rate, which is calculated on a per kWh basis. This charge is applied to
commercial and industrial customers and other large energy users for sharing the infrastructure
and maintenance costs that are incurred by the electricity provider to provide the peak power
when needed [23].

Different forms of incentives exist for renewable energy, for instance, feed-in tariff (FiT), net
metering (NEM), quota and trading systems, portfolio standards, tax credits, as well as pricing
laws. This particular study is done in Malaysia taking into account the market scenario like
battery price, electricity tariff, taxes and incentives etc.

2. Energy Sector: Malaysia

2.1 Tariff Scheme

There has been a steep increase in the tariff prices with an increase of 15% in the year 2014-15,
from a unit cost of MYR 0.3354/KWh(USD 0.0906/kWh) to MYR 0.3853/kWh (USD
0.104/kWh). Basically because the government has cut down subsidies on the energy fuel
sector. Plus the increase in the prices of the coal is also a factor for the increase in price.

34
 Fig 1

The above graphs show the increase in installed capacity and maximum demand in Malaysia
over the years. Commercial and Industries are the main consumer of the electricity followed by
the residential and the transportation, electricity is an important factor for the growth of the
economy which is expected to increase by 3% annual till 2030. More and more power
generation plants are coming in order to meet the growing demand of the country.

Typically, the demand charges contribute to about 20% percent of the total electricity bill,
energy companies or DISCOMS usually charge the customer on a premium under the Time-of-
use (TOU) as per the highest demand captured in the month excluding the energy demand
charges per unit. Maximum demand (MD) charges are calculated by taking the demand over the
consecutive 30 day interval of 30 minute interval. MD charges increases the operating cost
which in turn decreases the competitiveness in the market.

Following tables and chart show the MD charges rate for different commercial and industrial
consumers:

C1: Medium Voltage commercial C2: Medium voltage off-peak commercial

E1: Medium voltage general industry E2: Medium Voltage peak/off peak industry

According to the government tariff, the Malaysian government charges C1 and E1 based on
Maximum demand model and C2 and E2 will be charged based on the on-peak/off-peak price
plus the MD charges.

For C1 and E1 maximum demand period is taken between 8:00 am and 10:00 pm, similarly for
C2 and E2 the on-peak timings are 8:00 am to 10:00 pm and the off peak timings are 10:00 pm
to 8:00 am respectively apart from the MD charges.

35
 Fig 2

The following figure shows the electricity load profile for a C1 type commercial connection on
25thnovember, a maximum demand of 1290kW was captured and was charged according to the
rates given in the table 1, apart from the net consumption charges, the customer had to pay
1290*30.3= 39,087 RM which account for almost 23% percent of the electricity bill use for the
particular day. Following table shows the electricity bill for the customer for the month of
November:

Battery energy storage integrated with PV technology will help the customers reduce the
electricity bill and cut off the demand charges (MD charges) from their bills. Various incentives
are offered by the government across the world to promote the Renewable energy (RE)
development, one such incentive is the net-metering (NEM). NEM promotes the self-
consumption of electricity produced by the PV modules and sending the excess of the energy to
the grid for which credit is given to the customer in excess of there electricity consumption.
NEM denotes the bi-directional flow of the electricity, to the grid when excess electricity is
produced and power from the grid is taken when the energy consumption is more than
production of the PV modules. NEM is the only technology by which public can play an
important role in the promotion of RE and hence contribute there bit to save the nature.

3. Review of peak shaving approach

36
37
38
 APPENDICES

[1] Waffenschmidt, E.: Dimensioning of Decentralized Photovoltaic Storages with

Limited Feed-in Power and their Impact on the Distribution Grid, In: Energy
Procedia, Volume 46, p. 88-97, 2014

[2] Reddy, T.B.: Linden's handbook of batteries, 4th. Auflage, McGraw-Hill

Professional, New York, London, 2010

[3] Jossen, A.; Weydanz, W.: Moderne Akkumulatoren richtig einsetzen, 1.

Auflage, Ubooks, Neusäß, 2006

[4] Laukamp, H.; Schmid, J.; Dincklage, R.v.: Power conditioning and control, In:
Eighth E.C. Photovoltaic Solar Energy Conference '88. International Conference.
Bd.I. Proceedings, Florenz, 1988

[5] Mondol, J.D.; Yohanis, YG.; Norton, B.: Optimal sizing of array and inverter
for grid-connected photovoltaic systems, In: Solar Energy, Volume 80, p. 1517-
1539, 2006

39
[6] Notton, G.; Lazarov, V.; Stoyanov, L.: Optimal sizing of a grid-connected PV
system for various PV module technologies and inclinations, inverter efficiency
characteristics and locations, In: Renewable Energy, Volume 35, p. 541-554, 2010

[7] Fuchs, G.; Lunz, B.; Leuthold, M.; Sauer, D.U.: Technology Overview on
Electricity Storage, Smart Energy for Europe Platform GmbH (SEFEP), RWTH
Aachen, Berlin, 2012, p. 66

[8] Ecker, M.; Nieto, N.; Käbitz, S.; Schmalstieg, J.; Blanke, H.; Warnecke, A.;
Sauer, D.U.: Calendar and cycle life study of Li(NiMnCo)O2- based 18650 lithium-
ion batteries, In: Journal of Power Sources, Volume 248, p. 839-851, 2014

[9] Millner, A.: Modeling Lithium Ion battery degradation in electric vehicles, In:
2010 IEEE Conference on Innovative Technologies for an Efficient and Reliable
Electricity Supply, p. 349-356

[10] Miyaki, Y.; Hayashi, K.; Makino, T.; Yoshida, K.; Terauchi, M.; Endo, T.;
Fukushima, Y.: A Common Capacity Loss Trend: LiFePO4 Cell's Cycle and
Calendar Ageing, In: The Electrochemical Society - Conference Abstracts,
Honolulu , 2012

[11] Peterson, S.B.; Apt, J.; Whitacre, J.F.: Lithium-ion battery cell degradation
resulting from realistic vehicle and vehicle-to-grid utilization,

[12] Dubarry, M.; Truchot, C.; Liaw, B.Y.: Cell degradation in commercial
LiFePO4 cells with high-power and high-energy designs, In: Journal of Power
Sources, Volume 258, p. 408-419, 2014

[13] Rosenkranz, Ch. A., Köhler, U.; Liska, J.L.: Modern Battery Systems for
Plug-In Hybrid Electric Vehicles, In: 23rd International Battery, Hybrid and Fuel
Cell Electric Vehicle Symposium and Exhibition (EVS-23), Anaheim, 2007

[14] Bundesverband Solarwirtschaft e.V.: Solarstromspeicher-Preismonitor

Deutschland, In: 29. OTTI Symposium Photovoltaische Solarenergie, Bad
Staffelstein, 2014

40
41
 BIBILOGRAPHY/REFERENCES
1 Book:

Electricity from sunlight, Paul A. Lynn

2 Book:

Large scale solar power systems, Peter Gevorkian

3 A conference paper:

Lithium-Ion Battery Storage for the Grid—A Review of Stationary

Battery Storage System Design Tailored for Applications in Modern
Power Grids, Department of Electrical and Computer Engineering,
Technical University of Munich (TUM), 80333 Munich, Germany

4 Book:
Lithium Ion Fundamental and chemistry, Jiujun Zhang

5 A conference Paper:

Lithium-ion battery cost analysis in PV-household application Maik

Naumann, Ralph Ch. Karl, Cong Nam Truong, Andreas Jossen, Holger C.
Hesse

6 A conference Paper:

Comparison the economic analysis of the battery between

lithium-ion and lead-acid in PV stand-alone application Suratsawadee

Anuphappharadorn, Sukruedee Sukchai, Chatchai Sirisamphanwong and
Nipon Ketjoy.

7 A Journal Paper:

Prospective improvements in cost and cycle life of off-grid lithium-ion

battery packs: An analysis informed by expert elicitations, Grantham
Institute – Climate Change and the Environment, Imperial College
London, Exhibition Road, London

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