Sizing a Battery Energy Storage System for Hybrid Renewable Power Plants Based on Optimal Market Participation Under Different Market Scenarios
Jon Martinez-Rico, Ekaitz Zulueta, Ismael Ruiz de Argandoña, Mikel Armendia, Unai Fernández‐Gámiz
Abstract
This article presents a method for selecting the best battery sizing based on an optimal market participation strategy in a hybrid renewable power plant. The proposed formulation considers different scenarios to ensure the reserve provision compliance and includes two terms. The first one maximizes the day-ahead and automatic frequency restoration reserve (aFRR) market revenues. The second minimizes the battery degradation, accounting for both cycling and calendar ageing effects. The Iberian Electricity Market is selected as the study case, and two different market scenarios are compared: the current market scenario and the upcoming one, in which the upward and downward aFRR band offers are independent. The operation of a set of batteries is simulated until their end of life, and results reveal that energy/power ratios higher than 3 h for the current market scenario, and than 4 h for the upcoming one, are less cost effective. Regarding the best battery energy storage systems sizing, the selection varies considering incomes or profitability criteria. Moreover, keeping the current prices, in the upcoming market scenario hybrid renewable power plants are encouraged to participate more in the downward than in the upward aFRR market.