[en] 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.
Research center :
Interdisciplinary Centre for Security, Reliability and Trust (SnT) > FINATRAX - Digital Financial Services and Cross-organizational Digital Transformations
Disciplines :
Management information systems Electrical & electronics engineering Computer science
Author, co-author :
Pandžić, Kristina; Croatian TSO (Hrvatski Operator Prijenosnog Sustava d.o.o.-HOPS), Zagreb, Croatia
PAVIĆ, Ivan ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX
Andročec, Ivan; Hrvatska Elektroprivreda d.d., Zagreb, Croatia
Pandžić, Hrvoje ; Department of Energy and Power Systems, Faculty of Electrical Engineering and Computing, University of Zagreb, Zagreb, Croatia
External co-authors :
yes
Language :
English
Title :
Optimal battery storage participation in european energy and reserves markets
Original title :
[en] Optimal battery storage participation in european energy and reserves markets
ERDF - European Regional Development Fund EU Horizon
Funding number :
863876; KK.01.1.1.04.0034
Funding text :
Funding: This work was funded in part by the European Union through the European Regional Development Fund Operational Programme Competitiveness and Cohesion 2014–2020 of the Republic of Croatia under project KK.01.1.1.04.0034 “Connected Stationary Battery Energy Storage”. It also received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement 863876 in the context of the FLEXGRID project.
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