Business cases for energy storage with multiple service provision

Abstract

Energy storage (ES) has been considered as the key source of flexibility to support the integration of renewable energy. Previous studies have demonstrated the substantial system cost savings by the deployment of ES, including both investment and operation of generation, transmission and distribution infrastructure. However, this societal benefit may not be realized if industry actors do not have a viable business case to appropriately capture these multiple value streams. In this context, this paper investigates the value that ES may deliver to its owner over two specific business cases in a 2030 UK system. Firstly, the application of large-scale ES in the wholesale market is analysed. It is demonstrated that the optimal allocation of ES to provide multiple services is the key element for ES to become competitive in the electricity market. In the second business case, this paper analyses the value of kilowattscale ES combined with roof photovoltaic (PV) system in the household and community level. The study shows that multiple service provision of ES through advanced pricing schemes, for example time-of-use (ToU) tariff and dynamic distribution use of system (DUoS), lead to higher value and the coordination in the community level could further justify the application of domestic ES.

Reactive Power Injection from Battery Energy Storage During Voltage Dips at a Thermal Power Plant

“…The continuous nature of steady-state reactive power provision means that the commitment of a BESS to this service would restrict its ability to provide other system services. In [11] the value of frequency response is shown to vary with time and it is suggested that the minimum value is at high demand. Conversely, reactive power services tend to have most value when demand is high as this is when voltage support related constraints are active.…”

Sharing Energy Storage Between Transmission and Distribution

“…The concept of providing multiple simultaneous services with storage resources has generated active discussion throughout academia, industry, and government. The business case for multiple service provision in wholesale and retail markets is assessed by Teng and Strbac in [2]. Related economic analyses can be found in [3]- [5].…”

“…Related economic analyses can be found in [3]- [5]. In contrast to [2], which focuses on the aggregation of distributed storage systems, we concentrate on independently scheduled utility-scale systems.…”

“…In the initial time period, p i (t − 1) takes a special value, p 0 i , that reflects the initial power output of the ith unit. 7) Renewable generation curtailment constraints: Recall that the objective function stated in (2) includes terms that account for the cost of curtailing variable renewable generation. In accordance with (4) and (5), the constraints on curtailment are given by…”

Assessment of Future Whole-System Value of Large-Scale Pumped Storage Plants in Europe

“…The authors in [4] present a detailed review on the operation of hydro plants. The capability of energy storage to contribute simultaneously to energy and frequency service markets is analysed in [5,6]. In addition, energy storage systems are used to manage the variability of wind and PV generation in [7,8].…”