Techno-economic analysis of battery storage and curtailment in a distribution grid with high PV penetration

Abstract

Global solar PV capacity continues growing and this technology is a central solution for the global energy transition based on both economic growth and decarbonisation. PV technology is mainly being installed in distribution networks next to the consumption centres but it is an intermittent source which does not offer demand matching capability therefore calling for the redesign of distribution networks. In this study, battery storage and PV curtailment are compared as solutions for a residential area in Zurich (Switzerland) with large PV penetration from a techno-economic perspective. The techno-economic analysis focuses on the implications of the location (and related size) of battery storage and the type of curtailment control (fixed versus dynamic) for relevant stakeholders such as consumers and the distribution network operator. PV energy time-shift, the avoidance of PV curtailment and the upgrade deferral of the distribution transformer are the energy services provided by battery systems. Residential batteries offer more value for PV management than grid-scale solutions despite higher levelized cost but PV curtailment is the most cost-effective solution since only up to 3.2% of total PV electricity generation in energy terms should be curtailed for avoiding the transformer upgrading. We conclude that shared ownership models for PV curtailment could considerably improve its acceptance among consumers.