Profitable batteries require advanced control systems and realistic battery models
Challenge and objective
Batteries can be a valuable flexible resource in the power system, with their quick response time and scalability.
High investment cost and degradation from usage can limit the actual value a battery provides.
Understanding the impact of degradation is key to reflect on the value of battery usage.
Work performed
The work has investigated different degradation models for capturing how operation affects degradation costs.
The Rainflow-method has been implemented and used to analyze battery degradation when offering Frequency containment reserves (FCR) for a case study of frequency data for a year of operation.
Significant results
The analysis found high variation in degradation cost for a NMC and LFP battery.
For an NMC-battery, degradation cost increased the more of the total battery capacity was offered in the FCR-market. The analysis found that the optimal solution would be to limit contribution somewhat to maximize profit
Impact for distribution system innovation
This work captures how degradation affects profitability, and reflects a cost of using a battery.
Higher power-based usage of the battery impacts degradation, which should be accounted for when offering flexibility to the grid.
