The price of frequency regulation of energy storage system

Is there a market model for energy and performance-based frequency regulation services?

Comparison of frequency deviations under traditional market model and performance-based market model This paper presents the mathematical formulation of a market model for energy and performance-based frequency regulation services. The charging and discharging schedules for fast-ramping energy storage units are taken into considerations.

Can energy and performance-based regulation services be procured simultaneously?

This study presents a market model that procures energy and performance-based regulation services simultaneously considering the participation of energy storage devices. The correlations of energy, regulation capacity, and regulation mileage are explicitly demonstrated.

What are the clearing prices for regulation services?

The clearing prices for regulation services are given in (29)– (32). Generally, the LMP at each bus, , could be decomposed into three components: (i) the marginal energy cost, (ii) marginal cost of transmission losses, and (iii) the marginal cost of transmission network congestions .

Why is battery energy storage so expensive?

This is caused by a series of reasons, including the limited storage capacity, limited charging and discharging power, insufficient price gap, and round-trip efficiency. The majority of the revenue of the battery energy storage system is from providing regulation services, including regulation capacity and regulation mileage.

What is a performance based frequency regulation payment?

In existing performance-based frequency regulation markets, the payment to each regulation provider includes two components: (i) a regulation capacity payment compensating the opportunity cost for providing regulation, and (ii) a regulation mileage payment reflecting the actual regulation performance in real-time operation.

How does limiting SoC affect battery energy storage?

It is also indicated that as constraint (26) is implemented to the energy storage unit, limiting the SOC of the battery energy storage system, the SOC stays within the prescribed ‘safety band’, ensuring enough energy to provide bidirectional regulation services. The expected revenue of the battery energy storage is calculated in Table 6.