Cost-Saving Synergy: Energy Stacking in Battery Energy Storage Systems

References

• Agrawal VV, Yücel Ş (2021) Renewable energy sourcing. Swaminathan J, Deshpande V, eds. Responsible Business Operations, Springer Series in Supply Chain Management (Springer, Cham, Switzerland), 211–224.Crossref, Google Scholar
• Agrawal VV, Toktay LB, Yücel Ş (2022) Non-ownership business models for solar energy. Manufacturing Service Oper. Management 24(4):2048–2063.Link, Google Scholar
• Alizamir S, de Véricourt F, Sun P (2016) Efficient feed-in-tariff policies for renewable energy technologies. Oper. Res. 64(1):52–66.Link, Google Scholar
• Alizamir S, Iravani, F, Yücel Ş (2021) Investment in wind energy: The role of subsidies. Research paper, Georgetown McDonough School of Business, Washington, DC.Google Scholar
• Avci B, Girotra K, Netessine S (2015) Electric vehicles with a battery switching station: Adoption and environmental impact. Management Sci. 61(4):772–794.Link, Google Scholar
• Broneske G, Wozabal D (2017) How do contract parameters influence the economics of vehicle-to-grid? Manufacturing Service Oper. Management 19(1):150–164.Link, Google Scholar
• Burns & McDonnell (2022) Battery energy storage augmentation: Key project considerations. Accessed August 14, 2024, https://blog.burnsmcd.com/battery-energy-storage-augmentation-key-project-considerations.Google Scholar
• Chang MH, Huang HP, Chang SW (2013) A new state of charge estimation method for LiFePO4 battery packs used in robots. Energies 6(4):2007–2030.Crossref, Google Scholar
• Chen LI, He L, Zhou Y (2024) An exponential cone programming approach for managing electric vehicle charging. Oper. Res. 72(5):2215–2240. Link, Google Scholar
• Cheng B, Powell WB (2016) Co-optimizing battery storage for the frequency regulation and energy arbitrage using multi-scale dynamic programming. IEEE Trans. Smart Grid 9(3):1997–2005.Google Scholar
• Cruise J, Flatley L, Gibbens R, Zachary S (2019) Control of energy storage with market impact: Lagrangian approach and horizons. Oper. Res. 67(1):1–9.Link, Google Scholar
• Drury E, Denholm P, Sioshansi R (2011) The value of compressed air energy storage in energy and reserve markets. Energy 36(8):4959–4973.Crossref, Google Scholar
• E3 (2020) Minnesota energy storage cost-benefit analysis. Technical report, E3, San Francisco, CA.Google Scholar
• Ecker M, Nieto N, Käbitz S, Schmalstieg J, Blanke H, Warnecke A, Sauer DU (2014) Calendar and cycle life study of Li(NiMnCo)O2-based 18650 lithium-ion batteries. J. Power Sources 248:839–851.Crossref, Google Scholar
• EIA (2021a) Battery storage in the United States: An update on market trends. Technical report, EIA, Washington, DC.Google Scholar
• EIA (2021b) Form EIA-860. Technical report, EIA, Washington, DC.Google Scholar
• Elektrek (2020) A look at Tesla battery degradation and replacement after 400,000 miles. Accessed August 15, 2025, https://electrek.co/2020/06/06/tesla-battery-degradation-replacement.Google Scholar
• Engels J, Claessens B, Deconinck G (2017) Combined stochastic optimization of frequency control and self-consumption with a battery. IEEE Trans. Smart Grid 10(2):1971–1981.Crossref, Google Scholar
• Fluence (2020) How to maximize your battery’s value in California. Accessed August 15, 2025, https://blog.fluenceenergy.com/how-to-maximize-energy-storage-battery-value-california.Google Scholar
• Frost & Sullivan (2023) Battery energy storage growth opportunities: Renewed governmental support for clean energy transition propels an already fast-growing industry. Technical report, Frost & Sullivan, San Antonio, TX.Google Scholar
• Goodarzi S, Aflaki S, Masini A (2019) Optimal feed-in tariff policies: The impact of market structure and technology characteristics. Production Oper. Management 28(5):1108–1128.Crossref, Google Scholar
• Hasija S, Shen ZJM, Teo CP (2020) Smart city operations: Modeling challenges and opportunities. Manufacturing Service Oper. Management 22(1):203–213.Link, Google Scholar
• Heide D, Von Bremen L, Greiner M, Hoffmann C, Speckmann M, Bofinger S (2010) Seasonal optimal mix of wind and solar power in a future, highly renewable Europe. Renewable Energy 35(11):2483–2489.Crossref, Google Scholar
• IRENA (2020) Electricity storage valuation framework: Assessing system value and ensuring project viability. Technical report, IRENA, Masdar City, Abu Dhabi, United Arab Emirates.Google Scholar
• Jiang DR, Powell WB (2015) Optimal hour-ahead bidding in the real-time electricity market with battery storage using approximate dynamic programming. INFORMS J. Comput. 27(3):525–543.Link, Google Scholar
• Kaps C, Netessine S (2022) Residential battery storage: Reshaping the way we do electricity. Preprint, submitted September 30, https://doi.org/10.2139/ssrn.4219247.Google Scholar
• Kaps C, Marinesi S, Netessine S (2023) When should the off-grid sun shine at night? Optimum renewable generation and energy storage investments. Management Sci. 69(12):7633–7650.Link, Google Scholar
• Kempton W, Tomić J (2005) Vehicle-to-grid power fundamentals: Calculating capacity and net revenue. J. Power Sources 144(1):268–279.Crossref, Google Scholar
• Kim JH, Powell WB (2011) Optimal energy commitments with storage and intermittent supply. Oper. Res. 59(6):1347–1360.Link, Google Scholar
• Kök AG, Shang K, Yücel Ş (2018) Impact of electricity pricing policies on renewable energy investments and carbon emissions. Management Sci. 64(1):131–148.Link, Google Scholar
• Kök AG, Shang K, Yücel Ş (2020) Investments in renewable and conventional energy: The role of operational flexibility. Manufacturing Service Oper. Management 22(5):925–941.Link, Google Scholar
• Lauinger D, Vuille F, Kuhn D (2024) Reliable frequency regulation through vehicle-to-grid: Encoding legislation with robust constraints. Manufacturing Service Oper. Management Forthcoming.Link, Google Scholar
• Lazard (2021) Lazard’s levelized cost of storage analysis. Technical report, Lazard, New York.Google Scholar
• Löhndorf N, Wozabal D, Minner S (2013) Optimizing trading decisions for hydro storage systems using approximate dual dynamic programming. Oper. Res. 61(4):810–823.Link, Google Scholar
• Mak HY, Rong Y, Shen ZJM (2013) Infrastructure planning for electric vehicles with battery swapping. Management Sci. 59(7):1557–1575.Link, Google Scholar
• Murray C (2023) Battery storage sector prepares for first wave of large-scale project augmentations. Accessed August 15, 2025, https://www.energy-storage.news/battery-storage-sector-prepares-for-first-wave-of-large-scale-project-augmentations.Google Scholar
• Nadarajah S, Secomandi N (2018) Merchant energy trading in a network. Oper. Res. 66(5):1304–1320.Link, Google Scholar
• NREL (2019) Grid-scale battery storage. Accessed August 15, 2025, https://www.nrel.gov/docs/fy19osti/74426.pdf.Google Scholar
• Örsdemir A, Deshpande V, Parlaktürk AK (2019) Is servicization a win-win strategy? Profitability and environmental implications of servicization. Manufacturing Service Oper. Management 21(3):674–691.Link, Google Scholar
• Parker GG, Tan B, Kazan O (2019) Electric power industry: Operational and public policy challenges and opportunities. Production Oper. Management 28(11):2738–2777.Crossref, Google Scholar
• Perez A, Moreno R, Moreira R, Orchard M, Strbac G (2016) Effect of battery degradation on multi-service portfolios of energy storage. IEEE Trans. Sustainable Energy 7(4):1718–1729.Crossref, Google Scholar
• Peura H, Bunn DW (2021) Renewable power and electricity prices: The impact of forward markets. Management Sci. 67(8):4772–4788.Link, Google Scholar
• PV Magazine (2022) Hornsdale big battery begins providing inertia grid services at scale in world first. Accessed August 15, 2025, https://www.pv-magazine-australia.com/2022/07/27/hornsdale-big-battery-begins-providing-inertia-grid-services-at-scale-in-world-first.Google Scholar
• Qi W, Shen ZJM (2019) A smart-city scope of operations management. Production Oper. Management 28(2):393–406.Crossref, Google Scholar
• Qi W, Liang Y, Shen ZJM (2015) Joint planning of energy storage and transmission for wind energy generation. Oper. Res. 63(6):1280–1293.Link, Google Scholar
• Rathore G (2024) Augmentation strategies to manage long-term battery degradation. Accessed August 15, 2025, https://www.energy-storage.news/augmentation-strategies-to-manage-long-term-battery-degradation.Google Scholar
• Shi Y, Xu B, Wang D, Zhang B (2017) Using battery storage for peak shaving and frequency regulation: Joint optimization for superlinear gains. IEEE Trans. Power Systems 33(3):2882–2894.Crossref, Google Scholar
• Sunar N, Swaminathan JM (2021) Net-metered distributed renewable energy: A peril for utilities? Management Sci. 67(11):6716–6733.Link, Google Scholar
• Valogianni K, Ketter W, Collins J, Zhdanov D (2020) Sustainable electric vehicle charging using adaptive pricing. Production Oper. Management 29(6):1550–1572.Crossref, Google Scholar
• Wu OQ, Kapuscinski R (2013) Curtailing intermittent generation in electrical systems. Manufacturing Service Oper. Management 15(4):578–595.Link, Google Scholar
• Wu OQ, Kapuscinski R, Suresh S (2023) On the distributed energy storage investment and operations. Manufacturing Service Oper. Management 25(6):2277–2297.Abstract, Google Scholar
• Wu OQ, Wang DD, Qin Z (2012) Seasonal energy storage operations with limited flexibility: The price-adjusted rolling intrinsic policy. Manufacturing Service Oper. Management 14(3):455–471.Link, Google Scholar
• Wu OQ, Yücel Ş, Zhou Y (2022) Smart charging of electric vehicles: An innovative business model for utility firms. Manufacturing Service Oper. Management 24(5):2481–2499.Link, Google Scholar
• Xu B, Oudalov A, Ulbig A, Andersson G, Kirschen DS (2018) Modeling of lithium-ion battery degradation for cell life assessment. IEEE Trans. Smart Grid 9(2):1131–1140.Crossref, Google Scholar
• Zhang Y, Lu M, Shen S (2021) On the values of vehicle-to-grid electricity selling in electric vehicle sharing. Manufacturing Service Oper. Management 23(2):488–507.Abstract, Google Scholar
• Zhou Y, Scheller-Wolf A, Secomandi N, Smith S (2016) Electricity trading and negative prices: Storage vs. disposal. Management Sci. 62(3):880–898.Link, Google Scholar
• Zhou Y, Scheller-Wolf A, Secomandi N, Smith S (2019) Managing wind-based electricity generation in the presence of storage and transmission capacity. Production Oper. Management 28(4):970–989.Crossref, Google Scholar