Lifecycle Assessment of a Lithium-ion Battery Storage System for Frequency Regulation in a Real-World Application

Sammanfattning: Integrating more renewable energy sources into the grid has caused increased instability due to the intermittency of renewable energy sources. Hence, the need for grid balancing strategies such as frequency regulation has intensified. Areim, a Nordic real estate investment company, through this thesis, aims to have an assessment conducted to estimate the environmental benefits or consequences of using their specific battery system as a participant in the Swedish frequency regulation market, using the lifecycle assessment framework. The study only considered the cradle-to-gate lifecycle scope, excluding the product disposal stage, and the impact categories used align with the Environmental Footprint assessment methodology. The functional unit is in per kilo-watthour delivered, and the batteries are expected to deliver 933 kWh of electric energy over the estimated lifetime of 15 years. The normalized carbon emissions caused by delivering 1 kWh of energy for frequency regulation using the status quo prequalified technologies primarily comprised of hydropower, combined heat and power, and battery energy storage produce 4.75 kgCO2eq. Introducing Areim's specific battery system 200 kW bid into the prequalified technologies mix by substitution produces 0.075 kgCO2eq fewer carbon emissions per kWh delivered. The sensitivity analysis further supports that Areim will yield added carbon emission savings by increasing its available prequalified re-source capacity in the market. The findings of this thesis can be used to support Areim and other companies interested in grid support services such as frequency regulation to decide whether it is beneficial to use their specific battery systems for such services from an environmental effect perspective.