Does Oversizing Improve Prosumer Profitability in a Flexibility Market? -- A Sensitivity Analysis using PV-battery System

TL;DR

This paper investigates whether oversizing PV-battery systems enhances prosumer profitability in local flexibility markets, using a Python model and sensitivity analysis to evaluate economic benefits and limitations.

Contribution

It introduces a Python-based model for optimal PV-battery sizing and assesses profitability through sensitivity analysis, highlighting the potential advantages and constraints of oversizing.

Findings

Oversizing PV-battery systems can be economically beneficial.

Flexibility services have limited additional value beyond a certain oversizing extent.

Economic gains depend on electricity price variability and system costs.

Abstract

The possibilities to involve small-scale prosumers for ancillary services in the distribution grid through aggregators and local flexibility markets question whether it is profitable for prosumers to oversize proactively. In this analysis, a Python model is developed to identify the cost-optimal operation plan of the PV-battery system and to evaluate the device flexibility. An economic assessment is carried out to derive the cost-benefit of sizing based on the mean electricity price. A sensitivity analysis is performed with the above results to study the profitable sizing of PV-battery systems with flexibility services. The results show a promising advantage of oversizing although limitations prevail with the extent of flexibility services offered.