Provision of regulation service to power systems by energy storages based on a battery degradation cost model

Abstract

Energy storage station (ESS) has been allowed to provide ancillary services in power markets in recent years. It is a high-quality resource for regulation services and can promote renewable energy consumption. Existing studies have yet to consider the battery degradation cost when using ESS to provide regulation service. This paper establishes a model to quantify the ESS’s degradation cost and proposes a market-clearing model integrated with such a cost to address this issue. The model is verified by case studies. Key factors affecting the revenue and performance of ESS providing regulation services are also analyzed.