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March 28, 2026Sustainable Energy Grids and Networks0 citationsOpen Access

Community Batteries: Technology Overview and Multi-Market Techno-Economic Assessment

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GNGianluca NatrellaCDCarmen Bas DomenechFCFrancesco Conte

Key Points

  • The study aims to evaluate the techno-economic viability of community batteries across multiple energy markets.
  • Developed a techno-economic framework for analysis
  • Conducted a comparative review of various battery technologies
  • Utilized an optimization model in an Australian case study
  • Analyzed the performance of lithium-ion and vanadium redox flow batteries
  • Performed sensitivity analysis on market price conditions
  • Vanadium redox flow batteries are cost-effective under various conditions due to scalability and longevity
  • High-power lithium-ion batteries are viable only with favorable ancillary service prices
  • Participation in frequency control markets significantly boosts revenue potential
  • Profitability is more sensitive to market conditions than to cost variations

Abstract

Community Batteries (CBs) are emerging as critical assets for energy communities, enabling shared access to storage, facilitating renewable integration, and enhancing grid resilience. A techno-economic framework is developed to evaluate CBs across multiple markets, combining a comparative review of battery technologies with an optimization model applied to an Australian case study. The analysis considers lithium-ion chemistries (NMC, LFP, LTO) alongside vanadium redox flow batteries, highlighting how their technical properties align with community-scale operational requirements. Results indicate that vanadium redox flow batteries, with their scalability and long lifetimes, achieve cost-effectiveness across a wide range of conditions, whereas high-power lithium-ion technologies become viable only under favorable ancillary service prices. Participation in frequency control ancillary service markets emerges as the dominant factor shaping economic outcomes, with high-power CBs capable of unlocking large annual revenues in specific contexts. Sensitivity analysis confirms that profitability is influenced far more by market and price conditions than by moderate cost variations. These findings provide actionable insights for communities, policymakers, and regulators on the design of supportive frameworks for CBs deployment. • Critical review of battery technologies as possible Community Batteries (CBs) • Multi-market optimization framework for CBs • Modeling and simulating different CB technologies • Techno-economic assessment of CBs in energy communities • Policy highlights and suggestions for CBs stakeholders

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Cite This Study

Natrella et al. (2026) studied this question.

synapsesocial.com/papers/69c770888bbfbc51511e0939https://doi.org/10.1016/j.segan.2026.102229
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