TY - GEN
T1 - A cost-benefit analysis of large-scale battery energy storage systems for frequency markets
AU - da Motta Pires, Sergio Ricardo
AU - Aro, Matti
AU - Evens, Corentin
AU - Hentunen, Ari
AU - Ikäheimo, Jussi
N1 - Publisher Copyright:
© 2021 The Institution of Engineering and Technology.
PY - 2021/9
Y1 - 2021/9
N2 - Large-scale Battery Energy Storage Systems (BESS) play a crucial role in the future of power system operations. The recent price decrease in stationary storage systems has enabled novel opportunities for the integration of battery systems at utility-scale. The fast-response and availability of batteries indicate a great potential for utilising these resources in grid support operations, ancillary services and in energy markets. However, despite the recent decrease in prices, large-scale batteries still present significant investment costs. Thus, effective cost-benefit analysis are needed to evaluate the potential use of batteries for grid support. This paper presents an analysis of the potential profits yielded from the operation of a large-scale battery in the Finnish Frequency Containment Reserves for Normal Operations market. Moreover, an overview of dimensioning the power and energy capacity of the battery is presented. Large-scale BESS are shown to be interesting and profitable alternatives to be used as energy market resources given their appropriate dimensioning.
AB - Large-scale Battery Energy Storage Systems (BESS) play a crucial role in the future of power system operations. The recent price decrease in stationary storage systems has enabled novel opportunities for the integration of battery systems at utility-scale. The fast-response and availability of batteries indicate a great potential for utilising these resources in grid support operations, ancillary services and in energy markets. However, despite the recent decrease in prices, large-scale batteries still present significant investment costs. Thus, effective cost-benefit analysis are needed to evaluate the potential use of batteries for grid support. This paper presents an analysis of the potential profits yielded from the operation of a large-scale battery in the Finnish Frequency Containment Reserves for Normal Operations market. Moreover, an overview of dimensioning the power and energy capacity of the battery is presented. Large-scale BESS are shown to be interesting and profitable alternatives to be used as energy market resources given their appropriate dimensioning.
U2 - 10.1049/icp.2021.1470
DO - 10.1049/icp.2021.1470
M3 - Conference article in proceedings
T3 - IET Conference Proceedings
SP - 3130
EP - 3134
BT - The 26th International Conference and Exhibition on Electricity Distribution (CIRED 2021)
PB - Institution of Engineering and Technology IET
T2 - 26th International Conference and Exhibition on Electricity Distribution, CIRED 2021
Y2 - 20 September 2021 through 23 September 2021
ER -