Economic evaluation of the second-use batteries energy storage system considering the quantification of environmental benefits

Abstract

The number of retired batteries from electric vehicles continues to grow, which not only puts pressure on battery recycling but also leads to environmental pollution. By replacing the conventional batteries with the second-use batteries in configuring the energy storage system, the investment cost can be effectively reduced, and the issue of retired batteries disposal can be alleviated. In view of this, the paper investigates the quantification of the environmental benefits of second-use batteries, and comprehensively evaluates the second-use batteries energy storage system (SUBESS) in terms of environmental and economic benefits. The energy storage configuration model aimed at maximizing annual net income is developed, and the improved particle swarm optimization algorithm is applied to determine the optimal capacity and power in a photovoltaic (PV) pilot area. Under the same capacity condition, several evaluation indexes are used to compare the economics of the SUBESS with the conventional batteries energy storage system (CBESS). The results show that: (1) Compared to end-of-life disposal of batteries, secondary utilization will yield greater environmental benefits. (2) When the cost per unit capacity of the SUBESS is lower than 63.99 % of the CBESS, the economy of the SUBESS is better than that of the CBESS. Finally, targeted suggestions are made to further promote the scale development of the retired batteries secondary utilization industry. The research results not only validate the economic feasibility of the SUBESS but also have significant environmental benefits, which can provide a reference for potential investors.