Journal article
Optimal bidding strategy of battery storage in power markets considering performance based regulation and battery cycle life
Tsinghua University1
Department of Electrical Engineering, Technical University of Denmark2
Center for Electric Power and Energy, Centers, Technical University of Denmark3
Energy Analytics and Markets, Center for Electric Power and Energy, Centers, Technical University of Denmark4
CITIES - Centre for IT-Intelligent Energy Systems, Centers, Technical University of Denmark5
Large-scale battery storage will become an essential part of the future smart grid. This paper investigates the optimal bidding strategy for battery storage in power markets. Battery storage could increase its profitability by providing fast regulation service under a performance-based regulation mechanism, which better exploits a battery’s fast ramping capability.
However, battery life might be decreased by frequent charge–discharge cycling, especially when providing fast regulation service. It is profitable for battery storage to extend its service life by limiting its operational strategy to some degree. Thus, we incorporate a battery cycle life model into a profit maximization model to determine the optimal bids in day-ahead energy, spinning reserve, and regulation markets.
Then a decomposed online calculation method to compute cycle life under different operational strategies is proposed to reduce the complexity of the model. This novel bidding model would help investor-owned battery storages better decide their bidding and operational schedules and investors to estimate the battery storage’s economic viability.
The validity of the proposed model is proven by case study results.
| Language: | English |
|---|---|
| Publisher: | IEEE |
| Year: | 2016 |
| Pages: | 2359-2367 |
| ISSN: | 19493053 and 19493061 |
| Types: | Journal article |
| DOI: | 10.1109/TSG.2015.2424314 |
| ORCIDs: | Pinson, Pierre |
Battery cycle life Battery storage Optimal bidding strategy Performance-based regulation (PBR) Power markets SDG 7 - Affordable and Clean Energy
Batteries Computational modeling Spinning US Department of Defense battery cycle life model battery storage battery storage economic viability battery storage plants bidding model frequent charge-discharge cycling investor-owned battery storages large-scale battery storage operational strategies optimal bidding strategy optimisation performance-based regulation performance-based regulation (PBR) performance-based regulation mechanism power markets profit maximization model profitability regulation markets smart grid smart power grids
