The impact of degradation on the investment and operation of a community battery for multiple services

The emergence of local energy communities (LECs) introduces new concepts and dynamics to the operations of distribution grids. An important part of LECs is the shared ownership or control of assets such as photovoltaic systems and batteries. The aim of this article is to investigate how degradation impacts the investment and operation of a community battery which performs multiple services in a LEC. Two different grid tariffs are investigated: energy-based and demand charges. The case study set in Norway 2030 shows that the lifetime of the battery is significantly shortened when not considering degradation, highlighting the need to include cyclic degradation in models that investigates the profitability in investment and operational problems with batteries. In the case of a demand charge grid tariff, the expected lifetime was shortened by 6 years.