Battery sharing could cut energy costs for communities

(Press-News.org) What if neighbourhoods could lower their electricity bills without investing in expensive battery systems? An international study led by researchers at CWI (the national research institute for mathematics and computer science in the Netherlands) suggests exactly that: by leasing capacity from large, commercially operated batteries, communities can access the benefits of energy storage without the high upfront costs or additional technical challenges. In collaboration with GIGA Storage, a leading operator of grid-connected batteries in the Netherlands, the University of Glasgow (UK) and Princeton University (US), the researchers developed a method to determine how much battery capacity energy communities should rent, and at what price, so that both the community and the battery operator gain financially. Their approach was tested using real-world data from a community of 200 homes equipped with a wind turbine. They showed that considerable savings are possible, even after subtracting the battery rental costs.

Storing excess power The research comes at a time when rooftop solar panels and small wind turbines are increasingly common in residential areas, but many households struggle to store excess power for later use. Meanwhile, commercial battery operators are looking for stable revenue streams in volatile energy markets. This study proposes a solution that benefits both sides.

The core idea is simple: a battery operator rents out a portion of its large grid-connected battery to an energy community. That battery stores energy when prices are low and releases it when demand (and prices) rise. The researchers developed a mathematical model to find the “sweet spot”: how much capacity to rent out and when to charge or discharge, depending on market prices, tariffs, and community energy demand.

Reducing battery degradation Importantly, the team also tackled a practical challenge: how to control a grid-connected battery without wearing it out.  Professor Valentin Robu, leading investigator of the project, explains: ““Our work explores a number of techniques for modifying linear optimization algorithms. The goal is to increase long-term financial gains from using the battery capacity, while reducing the number of charge/discharge cycles, which can lead to a reduction of the battery’s remaining useful lifetime.”

The method was tested using both battery data from GIGA Storage and energy demand and wind generation data from the UK and the Netherlands. The approach is designed to be applicable in different countries, market settings and community models. It is a step forward in allowing energy communities to use more of their own locally generated renewable energy, increasing the financial viability of community energy projects, and reducing dependence on big utility companies.

About the study The full study, Optimal sizing and control of a grid-connected battery in a stacked revenue model including an energy community, was recently published in the journal Applied Energy (DOI: 10.1016/j.apenergy.2025.126122). Authors are affiliated with the Intelligent and Autonomous Systems Group from CWI (Tudor Octavian Pocola and Valentin Robu), and also with Delft University of Technology, Eindhoven University of Technology, Princeton University (USA), and University of Glasgow (UK).

Funding This research was supported by the EU-funded TESTBED-2 project under the Marie Curie Staff Exchange Programme (MSCA-RISE). The collaboration with GIGA Storage was also supported by a knowledge voucher from the Dutch Ministry of Economic Affairs, a government subsidy instrument that supports collaboration between businesses and research institutes.

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