Abstract
Cost reductions of rooftop photovoltaics and battery storage, increasing retail electricity prices as well as falling feed-in remuneration provide strong incentives for many German households to engage in self-consumption. These developments may also affect the electricity system as a whole. Against this background, we jointly apply a prosumer simulation and an agent-based electricity market simulation in order to investigate the long-term impacts of a residential battery storage diffusion on the electricity market. We analyze different regulatory frameworks and find significant effects on the household level, yet only moderate system impacts. In the long run, the diffusion of residential battery storage seems difficult to govern, even under a restrictive regulation. In contrast, the way the batteries are operated may be easier to regulate. Policymakers and regulators should focus on this aspect, since a system-friendly battery operation supports the system integration of residential photovoltaics while having little impact on the households’ self-sufficiency.
Highlights
Since the introduction of the Renewable Energies Act in 2000, more than 1.8 million photovoltaic (PV) systems with a nominal capacity of 49 GWp have been installed in Germany (Bundesverband Solarwirtschaft, 2020c), including more than 1 million small-scale rooftop systems with 6.4 GWp (50Hertz et al, 2019a)
Cost reductions of rooftop photovoltaics and battery storage, increasing retail electricity prices as well as falling feed-in remuneration provide strong incentives for many German households to engage in self-consumption
We developed and applied a novel modeling framework to investigate the long-term impacts of residential battery storage diffusion in Germany
Summary
Since the introduction of the Renewable Energies Act in 2000, more than 1.8 million photovoltaic (PV) systems with a nominal capacity of 49 GWp have been installed in Germany (Bundesverband Solarwirtschaft, 2020c), including more than 1 million small-scale rooftop systems with 6.4 GWp (50Hertz et al, 2019a). These high installation rates have led to drastic cost decreases for electricity generated by rooftop PV systems (Kost et al, 2018). Despite the potentially significant impacts on the electricity market, literature investigating the long-term impacts of residential battery storage diffusion is still scarce
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