Slides
Video
Abstract
The deepening penetrations of renewable energy resources into electric grids have increased the need for increased grid operational flexibility in today’s power grids. The high-ramping capability and fast response times of battery energy storage systems (BESSs) have increased interest in their wider deployment, particularly as the costs per MW and those per MWh continue their declines year after year. Such deployments aim to effectively exploit the three non-overlapping phases – charging, discharging and idle – in which storage resources operate. The participation of BESSs in electricity markets to provide energy and ancillary services have fostered interest in the formulation and the implementation of effective bidding strategies for such markets. A major challenge in such efforts is the explicit representation of battery-cell-degradation impacts and attendant costs in a way so as not to perturb the competitiveness of BESSs vis-vis the competing supply and demand resources in those markets. In this presentation, we review distinct bidding strategies for BESSs, their underlying assumptions and the manner in which these strategies affect BESS operations and profits. A key issue is to determine the appropriate trade-offs between optimal BESS operations over the long term and the avoidance of optimal BESS deployment decisions over the day-ahead and real-time market time frames in order to avoid inefficient battery cell operations. We provide some insights garnered from simulation studies.
