The emergence of cost effective battery storage

Jahr: 2019

Typ: Journal Publication

Fachzeitschrift: Nature Communications

Abstract

Energy storage will be key to overcoming the intermittency and variability of renewable energy sources. Here, we propose a metric for the cost of energy storage and for identifying optimally sized storage systems. The levelized cost of energy storage is the minimum price per kWh that a potential investor requires in order to break even over the entire lifetime of the storage facility. We forecast the dynamics of this cost metric in the context of lithium-ion batteries and demonstrate its usefulness in identifying an optimally sized battery charged by an incumbent solar PV system. Applying the model to residential solar customers in Germany, we find that behind-the-meter storage is economically viable because of the large difference between retail rates and current feed-in tariffs. In contrast, investment incentives for battery systems in California derive principally from a state-level subsidy program.

Veröffentlichungsinformationen

TRR 266 researchers

Stefan Reichelstein, University of Mannheim

Stefan Reichelstein is the chairholder of the endowed chair in business administration at University of Mannheim. He is also Professor Emeritus in Accounting and faculty research director at Steyer-Taylor Center for Energy Policy and Finance at Stanford University. His research focuses on cost-analysis, decentralization, internal pricing and success management. He is Research Associate of the Leibniz – Zentrum für Europäische Wirtschaftsforschung (ZEW) and Research Fellow at CESifo Institute in Munich. In addition, he is managing editor of Foundations and Trends in Accounting as well as editor for the Review of Accounting Studies and department editor of the Management and Business Review. He is also member of several editorial boards like the German Economic Review, Journal für Betriebswirtschaft and Review of Managerial Science. He is member of the Academic Advisory Board at the University of Cologne and founded the newly-endowed research institute, The Mannheim Institute for Sustainable Energy Studies (MISES) at Mannheim University.

External researchers

Stephen Comello

Start Page

End Page

Volume Number

DOI

DOI Link

To cite this article

Comello, S., & Reichelstein, S. (2019). The emergence of cost effective battery storage. Nature Communications, 10, 1-9. https://doi.org/10.1038/s41467-019-09988-z

Zugehörige Projekte

A04

Accounting for Investments in Operating Assets

+ 3

A04

Accounting for Investments in Operating Assets

Anna Rohlfing-Bastian

Abstract

Zugehörige Projekte

Accounting for Investments in Operating Assets

Accounting for Investments in Operating Assets

Beteiligte Institutionen