A cost-benefit analysis of large-scale battery energy storage systems for frequency markets

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

Abstract

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.
Original languageEnglish
Title of host publicationCIRED 2021 - The 26th International Conference and Exhibition on Electricity Distribution
PublisherInstitution of Engineering and Technology IET
Pages3130-3134
ISBN (Electronic)978-1-83953-591-8
Publication statusPublished - Sep 2021
MoE publication typeA4 Article in a conference publication
Event26th International Conference and Exhibition on Electricity Distribution, CIRED 2021: Online - Virtual
Duration: 20 Sep 202123 Sep 2021

Conference

Conference26th International Conference and Exhibition on Electricity Distribution, CIRED 2021
Abbreviated titleCIRED 2021
Period20/09/2123/09/21

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