Sources of revenue from energy storage and frequency regulation

Can a battery storage system be stacked to increase revenue?

Abstract—Several sources of revenue are available for battery storage systems that can be stacked to further increase revenue. Typically, price arbitrage is used to gain revenue from battery storage. However, additional revenue can be gained from participation in ancillary services such as frequency response.

How do frequency response services gain revenue based on charging/discharge?

For PA, revenue is gained based on the volume of energy traded, therefore the battery must be charged/discharged to gain revenue. In contrast, frequency response services gain revenue based on the time that power capacity is available. Therefore, these services gain most of their revenue regardless of their charging/discharging cycles.

Does battery storage increase revenue?

A school with PV and battery storage used as a local energy system case study. Revenue stacking in wholesale day-ahead energy and frequency response markets. Economic analysis of operating cost and investment viability of battery storage. Frequency response participation increased revenue and reduced total operating cost.

What is a local energy system?

Local energy systems (LESs) are collections of (flexible) energy demand, supply and/or storage that are operated to benefit local stakeholders. LESs with battery storage systems (BSSs) have several markets available to participate in to gain revenue. Participating in multiple markets to increase revenue is called ‘revenue stacking’.

How can frequency regulation increase revenues?

Introduction of new modeling for the provision of frequency regulation that allows direct/opposite reserves to be allocated in four modes of operation, hence reaching higher revenues by utilizing more reserves.

How can local energy system revenue stacking affect the power system?

Future work could incorporate battery degradation in the operational optimisation and add constraints to limit degradation. Additionally, model developments could account for the impact of local energy system revenue stacking on other actors in the power system, such as flexibility aggregators, retailers and power system operators.