Impact of battery technological progress on electricity arbitrage: An application to the Iberian market

Arcos-Vargas, Ángel; Canca, David; Núñez, Fernando

doi:10.1016/j.apenergy.2019.114273

Cited by 30 publications

(16 citation statements)

References 19 publications

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“…However, the prices for lithium ion batteries are currently falling steadily. According to [49] they are around 100 €/kWh, [50] forecasts a value of 84 €/kWh for the year 2020. With these values the investment for a storage capacity of 3.1 kWh would only be 260-310 €.…”

Section: Discussionmentioning

confidence: 99%

Quantifying the Demand Response Potential of Inherent Energy Storages in Production Systems

et al. 2020

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The increasing share of volatile, renewable energy sources rises the demand for consumers who can shift their electrical power demand in time. In theory, the industrial sector offers great potential here, as it accounts for a large proportion of electricity demand. However, the heterogeneous structure of facilities in factories and the concerns of operators regarding data security and process control often prevent the implementation of demand side management measures in this sector. In order to counteract these obstacles, this paper presents a general mathematical framework for modelling and evaluating different types of inherent energy storages (IES) which typically can be found in industrial production systems. The method can be used to calculate the flexibility potential of the IES in a factory with focus on hysteresis-controlled devices and make the potential visible and usable for power grid stabilization. The method is applied in a typical production line from metalworking industry to provide live monitoring of the current flexibility potential of selected devices.

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Section: Discussionmentioning

confidence: 99%

Quantifying the Demand Response Potential of Inherent Energy Storages in Production Systems

et al. 2020

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“…The technical characteristics of the BESS used for the evaluation of the model are presented in Table 1, and the BESS degradation curve used in this paper was presented in Figure 2. Regarding the economic characteristics, Table 2 shows the used economical parameters that were taken into account for the investment, operation, and maintenance costs of an ESS based on Li-ion batteries [27,28]. The following case studies were proposed to study the effect of different operating strategies in the incomes from BESS operation.…”

Section: Case Studiesmentioning

confidence: 99%

Grid-Scale Battery Energy Storage for Arbitrage Purposes: A Colombian Case

Penaranda¹,

Romero-Quete²,

Cortés³

2021

Batteries

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This study seeks to determine a suitable arbitrage strategy that allows a battery energy storage system (BESS) owner to obtain the maximum economic benefits when participating in the Colombian electricity market. A comparison of different arbitration strategies from the literature, such as seasonal, statistical, and neural networks-based models, is performed. To determine BESS’s optimal operation, a Mixed Integer Linear Programming (MILP) optimization problem is formulated, including a battery degradation model based on an upper piecewise linear approximation method. A financial evaluation of the different arbitrage strategies is carried out, resulting, for all the analyzed cases, in a negative net present value (NPV); thus, the results show that the income obtained from BESS when only performing energy arbitrage in the Colombian market do not compensate the investment costs. Results have also shown that strategies based on statistical and prediction models have a better performance than seasonal strategies, especially in atypical circumstances such as COVID-19.

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“…Fortenbacher et al considered optimized operation, however without covering thermal aspects during operation [2]. Arcos et al used MILP to evaluate system control however used constant efficiency values to model energy losses [1].…”

Section: Related Workmentioning

confidence: 99%

“…Although deploying additional generation and extended grid infrastructure may be a remedy in some cases, a market-oriented approach will involve the consumers' awareness to curb their power demand by incentivizing them via dynamic electricity pricing. Consequently, in those countries allowing varying electricity prices and liberalized energy markets, the opportunity of energy arbitrage trading via deployment and operation of energy storage systems emerges [1]. To monetize price fluctuations, batteries stand out as a promising candidate among other energy storage technologies, due to their fast response, high efficiency, and declining investment costs.…”

Section: Introductionmentioning

confidence: 99%

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Energy Arbitrage Optimization With Battery Storage: 3D-MILP for Electro-Thermal Performance and Semi-Empirical Aging Models

et al. 2020

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Dispatch of battery storage systems for stationary grid applications is a topic of increasing interest: due to the volatility of power system's energy supply relying on variable renewable energy sources, one foresees a rising demand and market potential for both short-and long-term fluctuation smoothing via energy storage. While the potential revenue attainable via arbitrage trading may yet surpass the steadily declining cost of lithium-ion battery storage systems, profitability will be constrained directly by the limited lifetime of the battery system and lowered by dissipation losses of both battery and power electronic components. In this study, we present a novel three-dimensional mixed-integer program formulation allowing to model power, state of charge (SOC), and temperature dependence of battery dynamics simultaneously in a three dimensional space leveraging binary counting and union-jack triangulation. The inclusion of a state-of-the-art electro-thermal degradation model with its dependence on most influential physical parameters to the arbitrage revenue optimization allows to extend the battery lifetime by 2.2 years (or 40%) over a base scenario. By doing a profitability estimation over the battery's lifetime and using 2018 historical intraday market trading prices, we have shown that profitability of the system increases by 11.14% via introducing SOC awareness and another significant 12.64% via introducing thermal sensitivity, resulting in a total 25.19% increase over the base case optimization formulation. Lastly, through the open source publication of the optimization routines described herein, an adaption and development of the code to individual needs is facilitated.

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Impact of battery technological progress on electricity arbitrage: An application to the Iberian market

Cited by 30 publications

References 19 publications

Quantifying the Demand Response Potential of Inherent Energy Storages in Production Systems

Quantifying the Demand Response Potential of Inherent Energy Storages in Production Systems

Grid-Scale Battery Energy Storage for Arbitrage Purposes: A Colombian Case

Energy Arbitrage Optimization With Battery Storage: 3D-MILP for Electro-Thermal Performance and Semi-Empirical Aging Models

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