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

Christoph Goebel, Holger Hesse, Michael Schimpe, Andreas Jossen, Hans Arno Jacobsen

Research output: Contribution to journalArticlepeer-review

60 Scopus citations

Abstract

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.

Original languageEnglish
Article number7738562
Pages (from-to)2724-2734
Number of pages11
JournalIEEE Transactions on Power Systems
Volume32
Issue number4
DOIs
StatePublished - Jul 2017

Keywords

  • Ancillary services
  • battery aging
  • economic value
  • lithium-ion batteries
  • optimization

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