Model-based Economic Assessment of Stationary Battery Systems Providing Primary Control Reserve

Fleer, Johannes; Zurmühlen, Sebastian; Badeda, Julia; Stenzel, Peter; Hake, Jürgen‐Friedrich; Sauer, Dirk Uwe

doi:10.1016/j.egypro.2016.10.093

Cited by 36 publications

(31 citation statements)

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“…Therefore, a sensitivity analysis is presented in subsection 4.3.3 presenting the influence of the bidding price on the maximal CAPEX to achieve a profitable business case. This work, as well as most of the related studies, assumes a constant yearly revenue stream over the BSS lifetime.…”

Section: Methodology Of the Techno‐economic Assessmentmentioning

confidence: 85%

“…The technical framework concerning the amount of energy that has to be reserved in the future to have access to the PCR market is still uncertain due to different regulations on a national and European level and may results in a E2P‐ratio of 2:1 for LiB . This is the same E2P‐ratio applied for the VRFB in this study.…”

Section: Methodology Of the Techno‐economic Assessmentmentioning

confidence: 99%

“…The result for the PCR‐case matches with current investigations according to which LiB‐systems can be operated profitable at the PCR market under optimistic assumptions, but for VRFB the investment costs have yet to fall . The investment costs of VRFB technology would have to decline by 30 % compared with the minimal capex and by 60 % compared with the realistic (average) capex in order to achieve a positive net present value.…”

Section: Techno‐economic Assesment and Validation Of The Simulated Rementioning

confidence: 99%

“…Regarding market based applications of BSS, the highest revenue potential in Germany lies in the primary control reserve (PCR) market, whereas the highest electricity cost reduction potential lies in maximising residential self‐consumption, which it started to become a business opportunity in Germany in 2013 . Thus, BSS projects in Germany focus primarily on these two potential business cases, but the same trend can be seen on a world‐wide level as well . In this work, large‐scale (or pooled) BSS applying self‐consumption maximisation are addressed as community electricity storage (CES), according to the definition of the previous studies .…”

Section: Introductionmentioning

confidence: 99%

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Technical and economic comparison of grid supportive vanadium redox flow batteries for primary control reserve and community electricity storage in Germany

et al. 2018

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Summary Primary control reserve and maximising self‐consumption are currently two of the main applications for large‐scale battery storage systems. Although being currently the most profitable application for large‐scale batteries in Germany, storage systems applying primary control reserve have not been implemented in a grid supportive manner in distribution grids yet. Despite a current unfavourable regulatory framework and reimbursement scheme for community electricity storages in Germany, they are potentially more profitable than residential storages, which is mainly due to their economy of scale, and thus they may become the major large scale battery application in the future. The two applications: primary control reserve and maximising self‐consumption, are combined with a grid supportive behaviour by providing reactive power control and/or peak shaving and are fitted to a vanadium redox flow battery prototype, which is installed in a distribution grid in southern Germany. Based on measured data from the prototype, two battery models for two different time resolutions (1s, 1min) are presented in detail along with their respective operation models. The operation strategy model for primary control reserve comprises the so‐called degrees of freedom used to reduce the energy needed to recharge the battery. The operation strategy to maximise self‐consumption is based on a persistence forecast. The model for the operation strategy for a grid supportive primary control reserve was validated in a field test revealing a relative error of 2.5 % between the simulated and measured state of charge of the battery for a multi‐week time period. The technical assessment of both applications shows that the use of the degrees of freedom can reduce the energy to recharge the battery by 20 %; and in the case of self‐consumption, the curtailment losses can be kept under 1 %. The economic assessment, however, indicates that even for the most promising primary control reserve case, the investment costs of vanadium redox flow batteries must be reduced by at least 30 % in order to break even. Finally, the encouraging key finding is that the negative impact of a grid supportive behaviour, additionally to its primary purpose, is less than 1 % of the revenues. This may encourage distribution grid and battery operators to consider the integration of large scale batteries in distribution grids as part of the solution of a rising share of a decentralised renewable energy generation.

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Section: Methodology Of the Techno‐economic Assessmentmentioning

confidence: 85%

Section: Methodology Of the Techno‐economic Assessmentmentioning

confidence: 99%

Section: Techno‐economic Assesment and Validation Of The Simulated Rementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Technical and economic comparison of grid supportive vanadium redox flow batteries for primary control reserve and community electricity storage in Germany

et al. 2018

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“…Largescale batteries are already used for the provision of frequency containment reserve (FCR), and a market share of 27% is expected by the end of 2017 (Fleer et al, 2016). Due to rapidly falling battery prices, it could become economic, that storage will also provide frequency restoration reserve (FRR).…”

Section: Renewables and Storage As New Market Participantsmentioning

confidence: 99%

Balancing Reserves within a Decarbonized European Electricity System in 2050: From Market Developments to Model Insights

Lorenz

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper expands the discussion about future balancing reserve provision to the long-term perspective of 2050. Most pathways for a transformation towards a decarbonized electricity sector rely on very high shares of fluctuating renewables. This can be a challenge for the provision of balancing reserves, although their influence on the balancing cost is unclear. Apart from the transformation of the generation portfolio, various technical and regulatory developments within the balancing framework might further influence balancing costs: i) dynamic dimensioning of balancing reserves, ii) provision by fluctuating renewables or new (battery) storage technologies, and iii) exchange of balancing reserves between balancing zones. The first part of this paper discusses and transforms these developments into quantitative scenario definitions. The second part applies these scenarios to dynELMOD (dynamic Electricity Model), an investment model of the European electricity system that is extended to include balancing reserve provision. In contrast to other models applied in most papers on balancing reserves, this model is capable of evaluating the interdependencies between developments in balancing reserve provision and high shares of fluctuating renewables jointly.The results show that balancing reserve cost can be kept at current levels for a renewable electricity system until 2050, when using a dynamic reserve sizing horizon. Apart from the sizing horizon, storage capacity withholding duration and additional balancing demand from RES are the main driver of balancing costs. Renewables participation in balancing provision is mainly important for negative reserves, while storages play an important role for the provision of positive reserves. However, only on very few occasions, additional storage investments are required for balancing reserve provision, as most of the time sufficient storage capacities are available in the electricity system. JEL Codes: Q42, Q47, Q48, C61, L94

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Demonstration of participation in the German balancing power market using a large‐capacity hybrid battery storage system

Hirose,

Tanaka,

Dewaki

et al. 2024

Electrical Engineering Japan

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As one of NEDO's international demonstration projects, a large‐capacity hybrid battery storage system which consists of two types of battery cells with different charge‐discharge characteristics was constructed in the state of Lower Saxony in the Federal Republic of Germany. By using the hybrid battery system has a lithium‐ion which has an advantage in short time and high rate, and a sodium‐sulfur battery (NAS) which has an advantage in long time and low rate, the tender participation in the balancing power market in Germany had been executed. The hybrid battery storage system could successfully drive and provided services for primary and secondary control reserves, elimination of power imbalance, and reactive power injection, as well as a combination of these services.

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Model-based Economic Assessment of Stationary Battery Systems Providing Primary Control Reserve

Cited by 36 publications

References 10 publications

Technical and economic comparison of grid supportive vanadium redox flow batteries for primary control reserve and community electricity storage in Germany

Technical and economic comparison of grid supportive vanadium redox flow batteries for primary control reserve and community electricity storage in Germany

Balancing Reserves within a Decarbonized European Electricity System in 2050: From Market Developments to Model Insights

Demonstration of participation in the German balancing power market using a large‐capacity hybrid battery storage system

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