On Battery Energy Storage Systems as Transmission Assets in Modern Power Grids
Date
2020-08-08
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Abstract
The electrical power industry has experienced a transition toward clean, sustainable generation. Increased percentages of non-dispatchable variable generation have a negative impact on grid stability and reliability. Energy storage is a natural fit to address this problem since it increases dispatchability on variable generation and it could be used to provide several services to the system. To further deploy grid-scale battery energy storage systems (BESSs), economic feasibility must be achieved. This thesis is focused on the large-scale integration of BESSs to the grid by providing optimization models that could help build a business case for BESSs in competitive electricity markets. First, a review of the working principles of a lithium-ion battery is provided and the desired characteristics on the chemistries for grid-scale applications are discussed. Also, the commercially available cathode - anode combinations are compared and ranked by their suitability for grid-scale applications. Then, an optimal market participation model is developed for a BESS that participates in multiple market segments. The proposed model enables the BESS to split it available capacity between multiple products and to be able to arbitrage its available energy between markets. To further increase the economic feasibility of BESSs along with the value they provide to the grid, I investigate the financial gains and risks of stacking market revenues with transmission services revenues for a stand alone merchant energy storage facility. For this study, two cases are analysed. A monetizing strategy for an existing BESS that is offered the possibility of adding transmission services to its market operation. And, an optimal sizing model for the planning of a new BESS that pretends to stack both sources of revenue. Simulations are conducted with real market data to show the validity of the models and to quantify to what extent the addition of more sources of revenue could help improve BESS's business case; thus, their widespread integration to power systems.
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Keywords
Energy Storage, Electricity Markets
Citation
Arteaga Lango, J. F. (2020). On Battery Energy Storage Systems as Transmission Assets in Modern Power Grids (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca.