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This paper presents a novel battery degradation cost (BDC) model for lithium-ion batteries (LIBs) based on accurately estimating the battery lifetime. For this purpose, a linear cycle counting algorithm is devised to estimate the battery cycle aging. In this algorithm, the local maximum and minimum values of the profile of the battery state of charge are identified by the proposed linear formulations. Then, the battery cycle aging due to the complete and incomplete cycles is determined. In this step, the battery cycle aging during an incomplete cycle is calculated by converting it to two complete cycles. After that, the calendar aging process of the LIB is linearly formulated based on the semi-empirical model to estimate the BDC accurately. After linearizing the LIB degradation process, a mechanism for computing the BDC during the scheduling horizon is designed by modeling the BDC as a series of equal payments over the LIB lifetime. In order to incorporate the BDC in the battery energy management problem, an iterative algorithm is presented for efficiently calculating the BDC associated with the adopted charging/discharging strategy. The numerical simulation results indicate that integrating the battery degradation process into the battery scheduling problem can reduce the amount of the battery capacity fading by 32.81%, as well as increase the profit of battery owners by 1.21%. Moreover, the conducted analyses highlight the importance of considering the LIB calendar aging process in determining the optimal LIB capacity.

Optimal Scheduling and Cost-Benefit Analysis of Lithium-Ion Batteries Based on Battery State of Health