Optimization of aggregated battery storage systems between ancillary and wholesale markets
The boom in renewable energy sources presents both significant benefits and inherent challenges. While renewables are crucial catalysts for a sustainable energy transition, they are often non-dispatchable and intermittent. As a result, issues such as grid reliability and stability arise due to fluct...
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| Tipo de recurso: | tesis de maestría |
| Fecha de publicación: | 2025 |
| País: | España |
| Institución: | Universitat Politècnica de Catalunya (UPC) |
| Repositorio: | UPCommons. Portal del coneixement obert de la UPC |
| Idioma: | inglés |
| OAI Identifier: | oai:upcommons.upc.edu:2117/445109 |
| Acceso en línea: | https://hdl.handle.net/2117/445109 |
| Access Level: | acceso abierto |
| Palabra clave: | Renewable energy sources Photovoltaic power generation Energy storage Energies renovables Energia solar fotovoltaica Energia – Emmagatzematge Àrees temàtiques de la UPC::Energies |
| Sumario: | The boom in renewable energy sources presents both significant benefits and inherent challenges. While renewables are crucial catalysts for a sustainable energy transition, they are often non-dispatchable and intermittent. As a result, issues such as grid reliability and stability arise due to fluctuating generation. To address these limitations, energy storage systems play a vital role by storing excess energy and contributing to grid balancing. This thesis explores the role of Aggregated Battery Storage Systems (AGBSS) and how they can be optimally coordinated to maximize revenue through participation in both the wholesale (spot) and ancillary service markets. The analysis focuses on Spain’s electricity system and market. The methodology involves the development of an optimization algorithm that utilizes secondary data on solar photovoltaic (PV) generation, electricity demand, and spot and ancillary market prices. Two optimizations are done: one to optimize the AGBSS capacity, and the other to optimize its operation between the wholesale and ancillary markets. A scenario-based analysis is conducted to evaluate the performance of three system configurations: Scenario 1: Solar PV generation without AGBSS, optimized across spot and ancillary markets. Scenario 2: Solar PV integrated with AGBSS, jointly optimized across both markets. Scenario 3: AGBSS only, optimized across spot and ancillary markets. The optimization results indicate that a battery capacity of 11 GWh with a storage duration of 24 hours is required, at an estimated cost of approximately €1.82 billion. Economic feasibility was assessed using Net Present Value (NPV) and Payback Period analyses. Among the three scenarios, Scenario 2 demonstrated the highest annual revenue, totaling €83.56 million. However, it also yielded the lowest NPV at– €65752 million. This negative result is attributed to the high capital and operational expenditures associated with managing two large-scale energy assets—solar PV and AGBSS. Nevertheless, Scenario 2 exhibited superior energy management, including reduced energy curtailment, increased energy sales, and battery energy supply during PV downtime. Out of 815 GWh of solar PV generation over the year, 77 GWh is curtailed in Scenario 1, whereas this curtailment is prevented in Scenario 2. Also, the charging and discharging of the AGBSS are more frequent in Scenario 2 compared to Scenario 3. This is evident in the state of charge graph. Such frequent cycling could impact battery degradation, as repeated charging and discharging may cause stress and accelerate the battery’s deterioration. In contrast, Scenario 3 delivered the poorest financial outcome, with an annual revenue of €14.07 million and an NPV of– €2180 million. All three scenarios resulted in negative NPVs due to high capital expenditures (CapEx) and operational expenditures (OpEx). Consequently, the payback periods for all configurations remain undefined, as negative annual profits make it impossible to recover the capital investments. The study investigated a grid-scale system comprising 500 MW of solar PV and AGBSS sized to meet grid demand. The results suggest that, under current conditions, such a large-scale deployment requires substantial investment and appears financially infeasible without additional policy support or revenue streams. |
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