Use of a dynamic cycle aging cost for the feasibility analysis of stationary batteries using FASBATT™

Abstract This paper analyses the impact of using a dynamic cycle aging cost in the feasibility analysis of battery energy storage systems by using the software tool FASBATT TM . This software evaluates the economic viability of battery energy storage systems participating in the Spanish day-ahead electricity market and several balancing services markets by simulating their operation over their entire lifetime. The tool runs on a rolling-horizon basis an optimisation model that maximises market profits while accounting for battery degradation costs, which include both cycle and calendar aging. Since battery remaining capacity varies throughout the battery lifetime, FASBATT TM incorporates a throughput cost in the objective function whose value can be updated during the operation analysed. Several criteria to consider the cycle aging cost have been implemented and analysed using FASBATT TM v0.6 considering different battery storage capacities. The operational outcomes derived using each criterion are compared to evaluate how the criterion used to model the cycle aging affects both feasibility indicators and lifetime-related parameters. The results indicate that, depending on the battery storage capacity and its business model, the choice of cycle aging cost is an important factor that should be carefully analysed, as it can lead to different operational patterns and significantly affect the feasibility results.