Session: 03-04: Innovative Energy Storage Solutions for Resilient Communities

Paper Number: 156628

156628 - Potential of Battery Energy Storage Systems for Energy Communities: A Policy-Focused Framework for an Affordable and Sustainable Energy Transition 

Abstract: 

The global effort to decarbonise the world’s energy systems has put renewables and battery energy storage systems (BESS) at the forefront. Their ability to integrate renewable energy sources, enhance grid stability, and optimise energy consumption in buildings and communities is undeniable. Yet, despite their vast potential, the widespread adoption of BESS faces significant challenges, often stemming from policy gaps and misaligned stakeholder incentives.

Previous policy efforts to integrate BESS have frequently fallen short by overlooking critical factors. These include:

Life cycle impacts: Policies often focus on upfront costs and immediate benefits, neglecting the long-term environmental implications of BESS deployment, including manufacturing, resource extraction, and end-of-life management.

Operational dynamics: Many policies fail to adequately address the operational complexities of BESS, such as cycling degradation, varying performance across different applications, and the need for sophisticated control strategies.

Stakeholder alignment: Successful BESS integration requires a cohesive approach that considers the diverse needs and perspectives of all stakeholders, including building owners, developers, grid operators, communities, and policymakers.

This study presents a mixed techno-economic and techno-environmental approach by developing a comprehensive framework that addresses these critical gaps via different policy scenarios. We conduct a comparative analysis of policy scenarios in the EU and US, examining the techno-economic and techno-environmental performance of BESS under diverse policy instruments, including carbon pricing, feed-in tariffs, renewable energy subsidies, energy communities for energy sharing and cost reductions, and time-of-use pricing.

Our analysis incorporates an innovative modelling approach that integrates life cycle assessment, techno-economic analysis, and stakeholder perspectives. We delve into critical metrics such as economic and environmental break-even points, benefit-to-emission ratio, life-cycle costs, and the impact of operational parameters like cycling degradation on BESS performance. These results are put in perspective based on real-world data and future projections from the International Energy Agency’s World Energy Outlook scenarios and referenced with the objective of the European Commission as well as the U.S. Department of Energy to ensure our findings are relevant to current and projected energy trends.

Our preliminary results highlight the crucial role of policy in shaping BESS adoption and achieving a just and sustainable energy transition. We identify key policy levers that can effectively incentivise BESS deployment, optimise their operation, and maximise their contribution to decarbonisation goals. By providing a nuanced understanding of the complex interplay between policy, technology, and stakeholder behaviour, this study empowers decision-makers to unlock the full potential of BESS and create a cleaner, more resilient energy future for all.

Presenting Author: Luka Smajila KTH - Royal Institute of Technology

Presenting Author Biography: Luka is a highly motivated and passionate individual who combines a strong background in chemical and energy engineering with a dedication to exploring sustainable solutions for a better future. With a BSc in Chemical Engineering from University of Ljubljana and an MSc in Energy Engineering from a double masters in Instituto Superior Tecnico Lisbon and Uppsala University, Luka brings a wealth of expertise to his engagements. Currently as a PhD candidate in Environmental modelling of energy storage systems focusing on understanding the interactions and integration of these systems in different grids, with the ultimate goal of finding ways to build cleaner, more efficient infrastructure that can improve our overall prosperity.