Revenue stacking for behind the meter battery storage in energy and ancillary services markets

Seward, William, Qadrdan, Meysam ORCID: https://orcid.org/0000-0001-6167-2933 and Jenkins, Nick ORCID: https://orcid.org/0000-0003-3082-6260 2022. Revenue stacking for behind the meter battery storage in energy and ancillary services markets. Electric Power Systems Research 211 , 108292. 10.1016/j.epsr.2022.108292

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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. This study presents a linear optimisation approach to account for local energy system participation in the wholesale day-ahead electricity market and multiple frequency response services. The methodology was applied to a school case study. A breakdown of market revenue and value of investment is presented for five operating strategies. The value of availability revenue and response energy revenue are distinguished for frequency response services. Finally, the impact of revenue stacking on battery degradation is assessed. The results show that local energy systems can decrease their operating costs and improve battery storage investment viability by stacking multiple revenues, whilst reducing degradation and increasing lifetime.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Engineering
Additional Information:	. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Publisher:	Elsevier
ISSN:	0378-7796
Funders:	EPSRC
Date of First Compliant Deposit:	1 August 2022
Date of Acceptance:	2 July 2022
Last Modified:	26 May 2023 20:29
URI:	https://orca.cardiff.ac.uk/id/eprint/151503

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