Second life batteries used in energy storage for frequency containment reserve service

Abstract

The new Li-ion battery systems used in electric vehicles have an average capacity of50 kWh and are expected to be discarded when they reach approximately 80% of their initial capacity, because they are considered to no longer be sufficient for traction purposes. Based on the o_cial national future development scenarios and subsequent mathematical modeling of the number of electric vehicles (EVs), up to 400 GWh of storage capacity in discharged batteries will be available on the EU market by 2035. Therefore, since the batteries still have a considerable capacity after the end of their first life, they could be used in many stationary applications during their second life, such as support for renewables, flexibility, energy arbitrage, peak shaving, etc. Due to the high output power achieved in a short time, one of the most promising applications of these batteries are ancillary services. The study assesses the economic effeciency of the used batteries and presents several main scenarios depending on the likely future development of the interconnected EU regulatory energy market. The final results indicate that the best results of second-life batteries utilization lie in the provision of Frequency Containment Reserve Service, both from a technical and economic point of view. The internal rate of return fluctuates from 8% to 21% in the realistic scenario, and it supports the idea that such systems might be able to be in operation without any direct financial subsidies.