Nyhet | 2016-06-03 | 11:18

Assessment of business opportunities for Vattenfall in distributed battery storage for household consumers in Germany

Master's thesis by Oscar Gustafsson and Johanna Maiorana, Industrial Economics at The Royal Institute of Technology (KTH).

Supervisors at Vattenfall: Vincent Otto.

Summary

The German initiative Energiewende aims to decrease their dependence on nuclear and fossil-based energy, and to increase the share of variable renewable energy sources (V-RES). This transformation calls for new technical solutions that can meet future stakeholder needs. Distributed battery storage (DBS), which can be used as a complement to the unreliable V-RES, is such a solution.

In this thesis, the possibilities for incorporating DBS into the German energy market were first analyzed. This was followed by calculations of the economic potential for DBS, and lastly a possible business model for Vattenfall associated with the identified business opportunities was developed. The assessment show big opportunities of incorporating DBS into the future energy system since it can increase the reliability and stability of the decentralized generation of V-RES. DBS will also be the cheapest solution for an average household 2030, making the technology a profitable solution. Finally, a suitable business model has been found for Vattenfall by leasing the DBS-units to prosumers and utilizing excess capacity for ancillary services to TSO’s and DSO’s. The ancillary services that can be utilized include frequency regulation and peak shaving.

Theoretically the thesis contributes with knowledge about the increasing possibilities of DBS becoming a large part of the future German power system. The thesis will also be a practical tool for utilities on how to adapt their business offering with regards to the new market.