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Analyze the Break-even Cost of Lithium-ion Battery under Time-of-use Pricing Tariffs

  • Binghui Li
  • , Jie Zhang
  • , Ali Mehmani
  • , Patricia J. Culligan

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Scopus citations

Abstract

Lithium-ion batteries can be used by households in a wide range of demand response (DR) programs. This paper examines break-even costs of lithium-ion batteries used in time-of-use (TOU) pricing DR programs. A mixed-integer program is developed to optimize battery capacities and operating schedules. Battery degradation is explicitly considered using a piecewise linear approximation. The model is tested under two TOU pricing tariffs. Parametric sensitivity analysis is conducted with respect to loan rates and C-rates. The results suggest that the lithium-ion batteries are still prohibitively expensive under prevailing market conditions.

Original languageEnglish
Title of host publication2019 IEEE Power and Energy Society Innovative Smart Grid Technologies Conference, ISGT 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781538682326
DOIs
StatePublished - Feb 2019
Event2019 IEEE Power and Energy Society Innovative Smart Grid Technologies Conference, ISGT 2019 - Washington, United States
Duration: Feb 18 2019Feb 21 2019

Publication series

Name2019 IEEE Power and Energy Society Innovative Smart Grid Technologies Conference, ISGT 2019

Conference

Conference2019 IEEE Power and Energy Society Innovative Smart Grid Technologies Conference, ISGT 2019
Country/TerritoryUnited States
CityWashington
Period02/18/1902/21/19

Keywords

  • Break-even analysis
  • Demand response
  • Lithium-ion battery
  • Mixed integer program
  • Time-of-use tariff

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