Revenue stacking for behind the meter battery storage in energy and ancillary services markets

Seward, William; Qadrdan, Meysam; Jenkins, Nick

doi:10.1016/j.epsr.2022.108292

Cited by 9 publications

(4 citation statements)

References 8 publications

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“…An expanding body of scholarly literature also attests to the efficacy of community batteries in ameliorating challenges emanating from the escalating integration of distributed solar PV generation, predominantly through rooftop installations [19,20]. These batteries generate value by serving as providers of ancillary services to the larger utility network, mitigating load peaks on the distribution framework, enhancing power quality by tempering the variable output from distributed PV systems, ensuring operational continuity of the low-voltage (LV) grid during outages or maintenance, staving off the necessity for immediate network upgrades, and elevating hosting capacities for solar PV and electric vehicle (EV) technologies [21,22]. As shown in Figure 1, the schematic elucidates the fundamental concept underpinning a community battery.…”

Section: Literature Review: Knowledge Gapsmentioning

confidence: 99%

Economic Viability Assessment of Neighbourhood versus Residential Batteries: Insights from an Australian Case Study

Mohseni,

Rutovitz,

Smith

et al. 2023

Sustainability

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Amidst the evolving paradigms of the contemporary energy landscape, marked by the imperative of sustainability and efficiency, the integration of energy storage has emerged as a transformative strategy that seeks to recalibrate the dynamics of electricity distribution and consumption. However, there remains a pressing need to determine the most economically viable approach for deploying energy storage solutions in residential low-voltage (LV) feeders, especially in rural areas. In this context, this paper presents the results of an economic evaluation of energy storage solutions for a residential LV feeder in a rural town in Australia. Specifically, the study compares the financial viability of a front-of-the-meter (FTM) battery installed on the feeder with that of a fleet of behind-the-meter (BTM) batteries. The FTM battery, with a size of 100 kW/200 kWh, is assumed to be operated by the retailer but owned by the community, with any profits assigned to the community. In this scenario, we studied a battery operating under standard network tariffs and three different trial tariffs that distribution network service providers currently offer in Australia. On the other hand, the fleet of BTM batteries (3 kW, 3.3 kWh) are individually owned by households with solar installations, and their cumulative capacity matches that of the FTM battery. The comparison is based on key economic parameters, including network charges, retail margins, frequency control ancillary service (FCAS) revenues, wholesale energy costs, technology costs associated with community batteries, and net profit or loss for the community, as well as considerations of utility grid arbitrage and solar photovoltaic (PV) self-consumption. The study also assumes different grant levels to assess the impact of subsidies on the economic feasibility for both battery configurations. The findings indicate that, while both require some form of subsidy for profitability, the BTM batteries outperform the FTM battery in terms of economic viability and so would require lower grant support. The FTM battery case finds a need for grants ranging from 75% to 95% to break even, while the BTM fleet requires approximately 50% in grants to achieve a similar outcome. In conclusion, this study highlights the importance of grant support in making energy storage solutions economically feasible. In particular, it highlights how the less mature segment of FTM batteries will need higher support initially if it is to compete with BTM. The outcomes of this study inform decision-making processes for implementing energy storage solutions in similar communities, fostering sustainable and cost-effective energy systems.

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Section: Literature Review: Knowledge Gapsmentioning

confidence: 99%

Economic Viability Assessment of Neighbourhood versus Residential Batteries: Insights from an Australian Case Study

Mohseni,

Rutovitz,

Smith

et al. 2023

Sustainability

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“…Also, the approach of stacking services allows the ESS owner to prioritize some of them, such as outage mitigation for grid security [31], over others depending on the time of the day. Many possibilities are available, like a mix between TSO and DSO services, or only behind-the-meter services [32].…”

Section: Introductionmentioning

confidence: 99%

“…The constraints for modes 2 and 4 (FCR reserve for regulation with an opposite sign of the committed energy in DA) are: Constraints (32) and (33) introduce the new reserves that allow the ESS to provide FCR regulation in the opposite sign of the committed energy in DA. Where (32) allocates the discharge energy product of DA as a downward FCR reserve, and (33) allocates the charge energy product of DA as an upward FCR reserve. That is illustrated in Fig.…”

mentioning

confidence: 99%

“…4 for both modes 2 and 4 respectively. The constraints (32) and ( 33) are non-linear, due to the multiplication of the binary variables with the continuous variables. Linearized constraints are then introduced in ( 41) -(44) to replace them, using the Big M method [36] , where the continuous variables ( zt opp,+ , zt opp,-) and the binary variables(ut,j opp,+ , ut,j opp,-) were introduced.…”

mentioning

confidence: 99%

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Stacked revenues for energy storage participating in energy and reserve markets with an optimal frequency regulation modeling

Mohamed,

Rigo-Mariani,

Debusschere

et al. 2023

Applied Energy

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Optimization of battery management in telecommunications networks under energy market incentives

et al. 2023

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Revenue stacking for behind the meter battery storage in energy and ancillary services markets

Cited by 9 publications

References 8 publications

Economic Viability Assessment of Neighbourhood versus Residential Batteries: Insights from an Australian Case Study

Economic Viability Assessment of Neighbourhood versus Residential Batteries: Insights from an Australian Case Study

Stacked revenues for energy storage participating in energy and reserve markets with an optimal frequency regulation modeling

Optimization of battery management in telecommunications networks under energy market incentives

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