Day-ahead economic scheduling of energy storage

Abstract

This article addresses the day-ahead economic optimisation of energy storage systems within the setting of electricity spot markets. The case study is about a lithium-ion battery system integrated in a low voltage distribution grid with residential customers and photovoltaic generation in the Netherlands, whereas the optimisation objective is to maximise revenues from energy arbitrage in the day-ahead auction. Assuming accurate predictions of the photovoltaic generation, the residential load and the market clearing prices, the constrained optimisation problem is formulated as the minimisation of a cost function, and is solved by utilising an internal model of the battery system to plan the future response of the charging and discharging process. Emphasis is given on the effect of the system efficiency, which significantly impacts the economic performance due to energy losses during the charging and discharging cycles.

Hierarchical predictive control scheme for distributed energy storage integrated with residential demand and photovoltaic generation

“…6 a . Overall, the computed revenues are declining, throughout the years, but this is also the case for the historical price volatility in the APX day‐ahead market [9], thus suggesting that market opportunities for energy storage are decreasing with respect to the specified application.…”

“…The upper control level addresses the application of energy arbitrage within the setting of the Dutch day‐ahead auction, whereas the intermediate and lower control levels address the passive contribution in the Dutch imbalance settlement system. The scheduling strategies for both the upper and intermediate control levels have been studied in stand‐alone modes [9, 10]. The novelty is the integration of those two strategies into a hierarchical three‐level control scheme, where the upper control levels are complemented by a lower controller which optimises the BESS operation close to real‐time according to measured quantities and updated predictions and information, and subject to the network capacity and other technical constraints.…”

Battery SOC management strategy for enhanced frequency response and day-ahead energy scheduling of BESS for energy arbitrage

“…Using UK historical pricing data, the proposed strategy selects the appropriate battery SOC profile to maximise the income revenue for arbitrage whilst delivering the EFR service. Stored energy in the BESS is expressed in (2) [11,[18][19][20]. 2where is battery discharging efficiency, is battery charging efficiency, is energy stored in the BESS at hour t, if BESS injects power at hour t, if BESS absorbs power at hour t.…”

“…The cost of the BESS charge/discharge and the total arbitrage revenue can be simply calculated using the following [11,[18][19][20]24]:…”

Feasibility Studies of End-Customer's Local Energy Storage on Balancing Power Market

“…Therefore, a valorization model has to be found for the battery energy storage that will reveal the revenue streams to guarantee the profitable operation o f t he s t o r a g e . P re v i o u s re s e a rc h ha s m a i n l y s ho w n results either on utility scale storage operation in the balancing power market [3] or on the operation of residential storage in spot markets [4]. This paper covers the gap and introduces the novel opportunities for the residential energy storage operation in the balancing power market.…”