Optimal Battery Storage Participation in European Energy and Reserves Markets
Battery energy storage is becoming an important asset in modern power systems. Considering the market prices and battery storage characteristics, reserve provision is a tempting play fields for such assets. This paper aims at filling the gap by developing a mathematically rigorous model and applying...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2020-12-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/13/24/6629 |
| _version_ | 1827699962364821504 |
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| author | Kristina Pandžić Ivan Pavić Ivan Andročec Hrvoje Pandžić |
| author_facet | Kristina Pandžić Ivan Pavić Ivan Andročec Hrvoje Pandžić |
| author_sort | Kristina Pandžić |
| collection | DOAJ |
| description | Battery energy storage is becoming an important asset in modern power systems. Considering the market prices and battery storage characteristics, reserve provision is a tempting play fields for such assets. This paper aims at filling the gap by developing a mathematically rigorous model and applying it to the existing and future electricity market design in Europe. The paper presents a bilevel model for optimal battery storage participation in day-ahead energy market as a price taker, and reserve capacity and activation market as a price maker. It uses an accurate battery charging model to reliably represent the behavior of real-life lithium-ion battery storage. The proposed bilevel model is converted into a mixed-integer linear program by using the Karush–Kuhn–Tucker optimality conditions. The case study uses real-life data on reserve capacity and activation costs and quantities in German markets. The reserves activation quantities and activation prices are modeled by a set of credible scenarios in the lower-level problem. Finally, a sensitivity analysis is conducted to comprehend to what extent do battery storage bidding prices affect its overall profit. |
| first_indexed | 2024-03-10T14:02:46Z |
| format | Article |
| id | doaj.art-333a05bfe42444249cabc33ca50003fa |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T14:02:46Z |
| publishDate | 2020-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-333a05bfe42444249cabc33ca50003fa2023-11-21T00:57:05ZengMDPI AGEnergies1996-10732020-12-011324662910.3390/en13246629Optimal Battery Storage Participation in European Energy and Reserves MarketsKristina Pandžić0Ivan Pavić1Ivan Andročec2Hrvoje Pandžić3Croatian TSO (Hrvatski Operator Prijenosnog Sustava d.o.o.—HOPS), Zagreb 10000, CroatiaDepartment of Energy and Power Systems, Faculty of Electrical Engineering and Computing, University of Zagreb, Zagreb 10000, CroatiaHrvatska Elektroprivreda d.d., Zagreb 10000, CroatiaDepartment of Energy and Power Systems, Faculty of Electrical Engineering and Computing, University of Zagreb, Zagreb 10000, CroatiaBattery energy storage is becoming an important asset in modern power systems. Considering the market prices and battery storage characteristics, reserve provision is a tempting play fields for such assets. This paper aims at filling the gap by developing a mathematically rigorous model and applying it to the existing and future electricity market design in Europe. The paper presents a bilevel model for optimal battery storage participation in day-ahead energy market as a price taker, and reserve capacity and activation market as a price maker. It uses an accurate battery charging model to reliably represent the behavior of real-life lithium-ion battery storage. The proposed bilevel model is converted into a mixed-integer linear program by using the Karush–Kuhn–Tucker optimality conditions. The case study uses real-life data on reserve capacity and activation costs and quantities in German markets. The reserves activation quantities and activation prices are modeled by a set of credible scenarios in the lower-level problem. Finally, a sensitivity analysis is conducted to comprehend to what extent do battery storage bidding prices affect its overall profit.https://www.mdpi.com/1996-1073/13/24/6629battery storageday-ahead marketreserve marketoptimal scheduling |
| spellingShingle | Kristina Pandžić Ivan Pavić Ivan Andročec Hrvoje Pandžić Optimal Battery Storage Participation in European Energy and Reserves Markets Energies battery storage day-ahead market reserve market optimal scheduling |
| title | Optimal Battery Storage Participation in European Energy and Reserves Markets |
| title_full | Optimal Battery Storage Participation in European Energy and Reserves Markets |
| title_fullStr | Optimal Battery Storage Participation in European Energy and Reserves Markets |
| title_full_unstemmed | Optimal Battery Storage Participation in European Energy and Reserves Markets |
| title_short | Optimal Battery Storage Participation in European Energy and Reserves Markets |
| title_sort | optimal battery storage participation in european energy and reserves markets |
| topic | battery storage day-ahead market reserve market optimal scheduling |
| url | https://www.mdpi.com/1996-1073/13/24/6629 |
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