Model-Based Dispatch Strategies for Lithium-Ion Battery Energy Storage Applied to Pay-as-Bid Markets for Secondary Reserve

Due to their decreasing cost, lithium-ion batteries (LiB) are becoming increasingly attractive for grid-scale applications. In this paper, we investigate the use of LiB for providing secondary reserve and show how the achieved cost savings could be increased by using model-based optimization techniq...

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Bibliographic Details
Published in:IEEE transactions on power systems 2017-07, Vol.32 (4), p.2724-2734
Main Authors: Goebel, Christoph, Hesse, Holger, Schimpe, Michael, Jossen, Andreas, Jacobsen, Hans-Arno
Format: Article
Language:English
Subjects:
Aging
Ancillary services
Batteries
battery aging
Cost control
Cost reduction
economic value
Electronic mail
Energy consumption
Energy storage
Gaging
Integrated circuit modeling
Iron
Lithium
Lithium-ion batteries
Marketing
Markets
Optimization
Optimization techniques
Rechargeable batteries
State of charge
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Summary:Due to their decreasing cost, lithium-ion batteries (LiB) are becoming increasingly attractive for grid-scale applications. In this paper, we investigate the use of LiB for providing secondary reserve and show how the achieved cost savings could be increased by using model-based optimization techniques. In particular, we compare a maximum use dispatch strategy with two different cost-minimizing strategies. For the estimation of state-dependent battery usage cost, we combine an existing electro-thermal LiB model of a mature lithium-iron-phosphate battery cell with corresponding semiempirical calendar and cycle aging models. We estimate the benefit of storage operation from the system operator's point of view by gauging the avoided cost of activated reserve. Our evaluation is based on two years worth of data from the German reserve market. The proposed cost minimizing dispatch strategies yield significantly better results than a dispatch strategy that maximizes battery utilization.
ISSN:0885-8950
1558-0679
DOI:10.1109/TPWRS.2016.2626392