Optimal participation of price-maker battery energy storage systems in energy and ancillary services markets considering degradation cost

Khalilisenobari, Reza; Wu, Meng

doi:10.1016/j.ijepes.2021.107924

Cited by 18 publications

(4 citation statements)

References 20 publications

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“…Accordingly, batteries shall be operated using an SOC controller to ensure that the charging state is kept within an optimal range. The article proposed a methodology for optimising the charging cycles and states, which has been widely adopted in recent research works such as by Amin et al, Khalilisenobari and Wu, as well as Naemi et al [8,43,54] focussing on battery-based AS provision.…”

Section: Batteriesmentioning

confidence: 99%

“…The article highlights the benefits of hybrid energy storage systems for frequency regulation purposes. As widely covered by recent academic work, such as Khalilisenobari and Wu, Naemi et al and Fernandez-Munoz et al [8,43,63], the AS provision of the BESS-based storage system is significantly limited by the SoC and charging / discharge characteristic of the actual battery. This limitation can be solved by combining SC with BESS, where SC can be used to share the regulation provision with BESS.…”

Section: Supercapacitorsmentioning

confidence: 99%

See 1 more Smart Citation

Advancing Fast Frequency Response Ancillary Services in Renewable-Heavy Grids: A Global Review of Energy Storage-Based Solutions and Market Dynamics

Varhegyi,

Nour

2024

Preprint

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This review paper addresses the growing challenges and developments in frequency control within power systems influenced by increasing penetration of renewable energy sources. It evaluates the advancements and limitations of renewable-based control technologies and explores the critical role of diverse energy storage technologies in providing fast frequency response ancillary services. Through a comprehensive analysis of global literature, this paper categorizes energy storage solutions according to their efficacy in meeting fast frequency response demands and potential for revenue generation. It reveals significant gaps in current research, which predominantly focuses on battery energy storage systems and microgrid applications, with insufficient attention to grid-scale storage solutions and innovative energy storage technologies. This analysis identifies a lack of detailed technical simulations and hybrid storage models for frequency control, as well as a minimal exploration of the environmental benefits, particularly in terms of carbon dioxide emission reductions, associated with deploying new energy storage technologies in ancillary service markets. The paper concludes by highlighting the necessity for further research incorporating detailed techno-economic evaluations and carbon dioxide reduction potential of modular, scalable energy storage technologies, facilitated by advanced network simulation models and comprehensive market analysis.

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Section: Batteriesmentioning

confidence: 99%

Section: Supercapacitorsmentioning

confidence: 99%

Advancing Fast Frequency Response Ancillary Services in Renewable-Heavy Grids: A Global Review of Energy Storage-Based Solutions and Market Dynamics

Varhegyi,

Nour

2024

Preprint

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“…Flat pricing means that even if demand changes, the price remains the same, and consumers will not pay high electricity bills for using electricity that was not planned or used during peak demand times [99]. Utility companies typically use this type of pricing for residential and small commercial customers.…”

Section: Pricing Framework In the Retail And Wholesale Marketsmentioning

confidence: 99%

Electricity Pricing and Its Role in Modern Smart Energy System Design: A Review

Liu

et al. 2023

Designs

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Energy is the foundation for human survival and socio-economic development, and electricity is a key form of energy. Electricity prices are a key factor affecting the interests of various stakeholders in the electricity market, playing a significant role in the sustainable development of energy and the environment. As the number of distributed energy resources (DERs) increases, today’s power systems no longer rely on a vertical market model and fixed electricity pricing scheme but instead depend on power dispatch and dynamic pricing to match supply and demand. This can help prevent significant fluctuations in supply–load imbalance and maintain system stability. Modern power grids have evolved by integrating information, communication, and intelligent control technologies with traditional power systems, giving rise to the concept of smart electric grids. Choosing an appropriate pricing scheme to manage large-scale DERs and controllable loads in today’s power grid become very important. However, the existing literature lacks a comprehensive review of electricity pricing in power systems and its transformative impact on shaping the energy landscape. To fill this void, this paper provides a survey on the developments, methods, and frameworks related to electricity pricing and energy trading. The review mainly considers the development of pricing in a centralized power grid, peer-to-peer (P2P) and microgrid-to-microgrid (M2M) energy trading and sharing, and various pricing methods. The review will cover the pricing schemes in modern power systems, particularly with respect to renewable energy sources (RESs) and batteries, as well as controllable load applications, and the impact of pricing schemes based on demand-side ancillary services (DSAS) for grid frequency support. Lastly, this review article describes the current frameworks and limitations of electricity pricing in the current energy market, as well as future research directions. This review should offer a great overview and deep insights into today’s electricity market and how pricing methods will drive and facilitate the future establishment of smart energy systems.

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“…While the economic literature on electricity markets is vast, the majority of studies focus on wholesale and retail energy markets. 5 The literature on AS markets and their interaction with wholesale markets is more limited, although it has seen recent growth due to anticipated increased AS demand resulting from increased renewable generation, and because of the emergence of battery storage as a participant in AS provision; see for example Pandžić et al (2020) and Khalilisenobari and Wu (2022) for recent optimization models of battery storage supplying into both AS and energy markets.…”

Section: Related Literaturementioning

confidence: 99%

Strategic interaction between wholesale and ancillary service markets

Brown,

Eckert,

Silveira

2023

Competition and Regulation in Network Industries

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In electricity markets, ancillary services (AS) are vital to ensuring system reliability through the instantaneous balancing of supply and demand. An important current policy question is whether AS markets clear simultaneously or sequentially with wholesale markets. We develop a model to study the strategic implications of market timing. We demonstrate that a strategic incentive to reduce AS and, consequently, lower marginal cost in the wholesale market arises when markets clear sequentially. Using data from Alberta, we find that the strategic effect has a small impact on wholesale outcomes but a large impact on the AS market.

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Optimal participation of price-maker battery energy storage systems in energy and ancillary services markets considering degradation cost

Cited by 18 publications

References 20 publications

Advancing Fast Frequency Response Ancillary Services in Renewable-Heavy Grids: A Global Review of Energy Storage-Based Solutions and Market Dynamics

Advancing Fast Frequency Response Ancillary Services in Renewable-Heavy Grids: A Global Review of Energy Storage-Based Solutions and Market Dynamics

Electricity Pricing and Its Role in Modern Smart Energy System Design: A Review

Strategic interaction between wholesale and ancillary service markets

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