Stacked Revenue and Technical Benefits of a Grid-Connected Energy Storage System

Operation Strategies for Coordinating Battery Energy Storage with Wind Power Generation and Their Effects on System Reliability

“…The process of discharging the batteries is a decision made when there is generation deficit in the system, such that if the available power is less than the total load, all the batteries contribute to the power injection into the grid. The requested power of each battery is a function of its participation factor, according to (6) and (7).…”

“…Different operational strategies [3] can be adopted for the use of storage systems, depending on the intended purpose, such as peak load supply [4], reduction of wind generation fluctuation and transmission deferral [5], reduction of load shedding [6], generating revenue [7], among others. One way to measure the system benefit due to the use of batteries is by reliability assessment [8][9][10], but other metrics may also be adopted, such as power quality indices, voltage control support, etc.…”

Maximising the investment returns of a grid‐connected battery considering degradation cost

“…Hence, the BESS follows the price taker model, not the price maker model. In other words, the size of the BESS is too small to influence the LMPs of the system [5, 18]. Therefore, , the revenue generated from the energy market, is expressed as follows: where is the LMP at the time t , and are the quantities of energy sold to and purchased from the market by the BESS at the time t .…”

“…Byrne et al [3] present a summary of the leading applications of grid‐connected storage systems. Among the applications of ESS prevalent today, energy arbitrage and frequency regulation have proved to be the most profitable ones according to multiple studies [4–6]. Walawalkar et al [4] discuss the economic case for ESS in NYISO for the two previously mentioned applications.…”

“…Walawalkar et al [4] discuss the economic case for ESS in NYISO for the two previously mentioned applications. Tian et al [5] present a method for determining the stacked benefits from ESS following the PJM market model while Nguyen et al in [6] present an approach for maximising economic benefits from ESS in the MISO electricity market. Although these studies focus on maximising the economic benefits of ESS, none of them provides a detailed cost–benefit analysis or takes the degradation of batteries into consideration.…”