Optimization of Battery Energy Storage System Operation in Distribution Grids

Currently, the main revenue streams for grid connected BESS stem from regulated energy markets, such as Day Ahead Market (DAM) and Primary Frequency Regulation (PFR). Furthermore, BESS have great potential in providing services to network operators, however a clear business case for such functionalities is still missing. Therefore, this research aims to evaluate the potential business case for BESS in Distribution Networks (DNs) by integrating market application and additional DSO services. The technical and economic feasibility of the solution is verified via a case study of an existing Photovoltaic - Fast Charging Station (PV-FCS). Three players are involved, namely PV-FCS station owner, DSO, and BESS owner. A mathematical deterministic optimization problem is formulated using mixed integer linear programming (MILP), so to integrate BESS operation in the DAM and FCR market, and the remunerated services are offered to the DSO. The study shows that a potential BESS implementation in DNs is economically and technically advantageous for all the players implicated in the case study. The BESS owner would have additional revenues, the DSO benefits from a reduced peak power and the possibility of defer network investments, and the PV-FCS owner from an overall 30% tariff reduction thanks to the peak shaving performed by the BESS.Electrical Engineering | Sustainable Energy Technolog