Battery Swapping Station Management With Heterogeneous Battery Functionality Degradation

The functionality of a battery, including its charge and discharge efficiency, power and energy capacity, gradually decreases as its state of health (SOH) declines. Neglecting the functionality degradation of battery can result in an overestimation of the profitability of a battery swapping station (BSS). To tackle the aforementioned problems, we propose a life-cycle decision model for BSS that considers the varying degrees of functionality degradation caused by heterogeneous batteries with different SOH levels. We apply the decision model to energy and transportation applications involving energy arbitrage, ancillary services, and battery swapping services for electric vehicles. Based on the electricity price scenarios in California, we reveal that in the annual operation of BSS, not considering battery functionality degradation can lead to a revenue deviation of 8%, while neglecting battery heterogeneity can lead to an average revenue deviation of 32%. Furthermore, we evaluate the long-term profitability of BSS with different business modes. The proposed model is expected to provide decision support for BSS operators to decide whether to use, how much to use, and which batteries to use, thereby achieving the tradeoff of battery use between energy and transportation sectors.