Energy recovery strategies for batteries providing frequency containment reserve in the Nordic power system

• DOI: 10.1016/j.segan.2022.100947
• Publication Date: 2022-11-02T02:01:27Z
• Authors: Jan Engelhardt; Andreas Thingvad; Jan Martin Zepter; Tatiana Gabderakh...; Mattia Marinelli
• Keywords: Energy market; Demand Response

Batteries are key components of future power systems with high shares renewables. Their fast response enables them to contribute one the most crucial ancillary services — frequency containment reserve. However, longer periods biased pose challenges for batteries due their limited energy capacity. This is particularly in Nordic synchronous area where 100 % certainty delivery required. The present study uses a simulation model three years historical frequency, market, and tariff data, compare management strategies that comply regulatory framework. first two both utilize an hourly adjustment reference to, on average, recover level desired value. In strategy, this traded intraday while second strategy it settled via balancing market. third based exemption agreement Danish transmission system operator. Since capacity payment strongest factor determines profit, derives maximum regulating annual profit as function energy/power ratio efficiency storage system. highest can be achieved when applying agreement. Where not available, battery operator should apply settle costs through Trading market slightly reduces costs, but allows significantly lower revenues.