Degrees of displacement: The impact of household PV battery prosumage on utility generation and storage

Abstract: Reductions in the cost of PV and batteries encourage households to invest in PV battery prosumage. We explore the implications for the rest of the power sector by applying two open-source techno-economic models to scenarios in Western Australia for the year 2030. Household PV capacity generally substitutes utility PV, but slightly less so as additional household batteries are installed. Wind power is less affected, especially in scenarios with higher shares of renewables. With household batteries operating to maximise self-consumption, utility battery capacities are hardly substituted. Wholesale prices to supply households, including those not engaging in prosumage, slightly decrease, while prices for other consumers slightly increase. We conclude that the growth of prosumage has implications on the various elements of the power sector and should be more thoroughly considered by investors, regulators, and power sector planners.