Business Models for Battery Storage Systems on Multidimensional Markets. A Structured Literature Review

Bachelor Thesis from the year 2021 in the subject Engineering - Industrial Engineering and Management, grade: 1,3, Karlsruhe Institute of Technology (KIT) (Institute of Information Systems and Marketing (IISM)), language: English, abstract: A variety of research papers on the topic of multitasking or multi-use of battery storage systems (BSS) exists. This thesis paper presents a structured literature review in this field of research by categorizing and analyzing the existing literature in this field. The main contributions are: (1) a high level overview of the reviewed research, including the structuring into predefined dimensions, and (2) a qualitative analysis of the most relevant clusters for this thesis, namely household energy storage and community energy storage. This review structures the literature by six different dimensions: (1) the location of the studied BSS and its connection to the grid, (2) the battery technology in use, (3) the size of the deployed BSS, (4) the renewable energy sources used together with the BSS, (5) the method introduced in the study, and (6) the revenue streams that are considered within the study. The review shows that in residential contexts, self-consumption accompanied by demand-side-management is the most proposed use case scenario to increase profitability of BSSs. Further applications that stand out are to provide balancing or ancillary services to system operators, but these require an aggregation of smaller BSSs to one larger entity. The reviewed results suggest that the combination of at least two of these applications significantly improves BSS profitability. However, forecasting techniques for renewable energy source production profiles, electricity demand, or market prices and battery degradation models are often disregarded by the authors in the reviewed literature.