Analysis of battery energy storage systems participation in multi-services electricity markets

Abstract

This work performs a comparative analysis of battery energy storage system (BESS) participation in the multi-services electricity market, considering the optimal operating cost and better profitability for the BESS portfolios. A comparison of the application of these portfolios in different market conditions is proposed: (i) energy-only market, (ii) reserve-only market, (iii) sequential energy and reserve market, and (vi) joint energy and reserve market. For each BESS portfolio, hourly strategies for buying and selling offers are proposed, to maximize the revenue, accounting for the expected load and generation variations in the grid. The analysis of the BESS strategies is carried out through a case study based on actual generation data, where operating costs and BESS flexibility are assessed. One conclusion is that, even though, BESS makes a profit by participating in single markets, the best strategy is to participate in both energy and reserve markets, especially in the presence of a joint energy and reserve market model. © 2022 IEEE.