Battery Sizing for Plug-in Hybrid Electric Vehicles in Beijing: A TCO Model Based Analysis

This paper proposes a total cost of ownership (TCO) model for battery sizing of plug-in hybrid electric vehicles (PHEVs). The proposed systematic TCO model innovatively integrates the Beijing driving database and optimal PHEV energy management strategies developed earlier. The TCO, including battery, fuel, electricity, and salvage costs, is calculated in yearly cash flows. The salvage cost, based on battery degradation model, is proposed for the first time. The results show that the optimal battery size for PHEVs in Beijing is 6–8 kWh. Several additional scenarios are also analyzed: (1) 10% increase in battery price or discount rate leads to an optimal battery size of 6 kWh, and 10% increase in fuel price shifts the optimal battery size to 8 kWh; (2) the longer and more dispersive daily range distribution in the U.S. increases the optimal battery size to 14 kWh; (3) the subsidy in China results in an optimal battery size of 13 kWh, while that in the U.S. results in 17 kWh, and a fuel savings rate based subsidy policy is innovatively proposed; (4) the optimal battery size with Li₄Ti₅O₁₂ batteries is 2 kWh, but the TCO of Li₄Ti₅O₁₂ batteries is higher than that of LiFePO₄ batteries.