Techno-economic assessment of isolated micro-grids with second-life batteries: A reliability-oriented iterative design framework

Abstract

Reusing lithium-ion batteries retired from electric vehicles (EVs) has received great attention as the performance of these batteries is still adequate for many stationary energy storage applications, such as micro-grids (MGs). To date, the economic and technical performance of second-life batteries (SLBs) in isolated MG systems remains obscure. Hence, this study focuses on the economic assessment of SLBs in an isolated 100% renewable MG, in order to identify a profitable application that promotes SLBs. The MG capacity design parameters are obtained by a two-stage chance-constrained stochastic optimization framework. To enhance the robustness of the MG design, a reliability-oriented iterative design process is proposed. This process involves continuous updates to the MG design, guided by validation results, until all specified requirements are satisfied. The lifetime of SLBs is determined using a semi-empirical degradation model seamlessly integrated into the validation process. Economic comparisons between SLBs and first-life batteries (FLBs) are conducted under identical design requirements, with consideration given to estimating the “price ceiling” and the impact of market factors. The results show that SLBs prove to be a more cost-effective option, especially when there is a demand for high reliability standards and the local electricity prices are comparatively lower.