| Summary: | Increasing electric vehicles (EV) penetration leads to significant challenges in EV battery disposal. Reusing retired batteries in distributed energy systems (DES) offers resource-circular solutions. We propose an optimisation framework to model the emerging supply chains and design strategies for reusing the retired EV batteries in DES. Coupling a supply chain profit-allocation model with a DES design optimisation model, the framework maximises the whole chain profit and enables fair profit distribution between three interactive sectors, i.e., EV, DES, dismantling and recycle (D&R) sectors. Our research highlights the system implications of retired batteries on DES design and new modelling insights into incentive policy effectiveness. Our case study suggests significant potential value chain profits (2.65 million US$) achieved by deploying 10.7 MWh of retired batteries in the DES application with optimal retired battery price of 138 US$/kWh. The revenue support on D&R sector is suggested as a promising incentive scheme than tariff support.
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