We provide our customers with costs per cycle values so that not only the market but also the battery side can be taken into account when making trading decisions. Based on the lifetime predicted by our AI and the associated feasible cycles, it is possible to calculate how the original investment costs are divided among the individual cycles. This provides a computational measure by which computational battery wear and tear can be set against potential revenues from marketing transactions.
Significance of costs per cycle in the operation of battery storage systems
Battery wear per charge and discharge cycle is an important factor in evaluating the economic viability of battery storage systems or the use of the systems for different usage scenarios, such as grid stabilization, storage of energy from wind and solar plants, or supply of e‑vehicles. Different use cases lead to different loads on battery storage, which in turn leads to different lifetimes and thus different costs per cycle.
For operators and marketers of battery storage, it is not necessarily crucial to lower the costs per cycle. In fact, it can often make sense to accept really high cots per cycle in order to reap particularly high profits. It is simply important to know exactly how certain decisions affect the battery side in order to make data-based and sustainable decisions. We provide the indicators for this.
Here are some usage scenarios and their impact on costs per cycle:
- Grid services: Battery storage can be used to support the power grid by providing primary control power, secondary control power, minute reserve, or other grid stabilization services. Revenue can be generated through participation in such service markets. Since the load on the battery storage unit is usually limited in these use cases, a long service life and low costs per cycle can be expected.
- Demand Side Management: Battery storage can be used in combination with smart energy management systems to optimize energy consumption. Shifting charging and discharging operations to times of lower electricity costs or higher renewable energy generation can save money. Depending on how the energy management system works, cost per cycle values in the low to medium range can be achieved.
- Peak shaving or load management: battery storage can be used to reduce peak loads in electricity consumption. This can help avoid expensive peak-load rates and reduce the overall cost per charge cycle. Depending on the respective use of the battery storage, its load is more or less pronounced and there is usually a wide range of possible cost per cycle values.
- Energy trading: In areas with dynamic electricity prices, battery storage owners can buy energy at low prices and sell it at higher prices. Skillful energy trading can increase the potential for revenue generation. In energy trading, it is usually important to be able to store and release electricity particularly quickly. The cycles that the battery has to perform are correspondingly intensive, which is why high cost per cycle values are often found in this area, but in combination with good marketing decisions, they can certainly pay off.
- Self-consumption of solar power: Battery storage can be used in conjunction with solar installations to store excess solar energy during sunny periods and then use it when needed. This can reduce the need to purchase expensive grid power and help increase energy self-sufficiency. Depending on how the systems are designed, low to medium cost per cycle values can generally be expected.
- Emergency power supply: Battery storage can be used as an emergency power supply for critical loads. In regions with frequent power outages, they can reduce the need for expensive diesel generators while providing a reliable source of electricity. Since these memories are only used very rarely and have high idle times with high charge states, they usually have very high cost per cycle values. Since these storage systems are more concerned with safeguarding important functions than with maximizing profits, the cost per cycle values often play only a subordinate role.
- Charging management for electric vehicles: Especially with a larger fleet and certain peak times when vehicles need to be charged, sometimes there is not enough power available from the grid to charge all vehicles at the same time. Battery storage can help here by taking in power during the day and releasing it at peak times in addition to the available grid power so that all vehicles can be charged. The cost per cycle values are generally in the medium to high range, depending on the utilization of the battery storage.
- Use in off-grid systems: In remote areas without connection to the power grid, battery storage can help store renewable energy and reduce the need for environmentally damaging generator operation. Cost per cycle considerations play a minor role here, but are usually in the medium range.
You want to calculate the Costs per Cycle in your battery storage? Then please feel free to contact us. We support you regardless of whether you use first- or second-life batteries and help you make data-driven, profitable decisions for your facility.