Battery Energy Storage System in Energy
& Reserve Market
Why Battery Energy Storage System 2
(BESS) is so important in modern days
Power System?
Ancillary services
Emergency response systems
Reduction of grid congestion
Fast Ramp rate
Peak shaving
Black start
Frequency Control Ancillary Service(FCAS)
3
BESS in Smart Grid 4
Peak Shaving 5
Black Start 6
State of Charge (SOC) & Depth of 7
Discharge(DOD)
DOD vs No. of cycles 8
DOD vs No. of cycles 9
Energy vs Time Curve 10
11
T/2
T
12
Basic Overview of Battery Life Model 13
C-Rating 14
For Different C- Rating 15
For Different C- Rating 16
Some Relevant Equations 17
C = aSOCk + bSOCk-1+ cDCRk + d
Basic Constraint for BESS Participation 18
1 . Large Investment
2 . Revenue Risk
3 . Evaluation in terms of Storage Capacity
Performance Based Regulation (PBR) 19
1 . What is PBR ?
Two part payment
Two-Part Payment 20
Payreg,cap = Preg,cap Capreg Scorepref ………………(1)
Payreg,pref = Preg,prefCapregRmileageScorepref ……….(2)
Total Income through Regulation 21
Payreg,cap = Preg,cap Capreg Scorepref ………………(1)
Payreg,pref = Preg,prefCapregRmileageScorepref ……….(2)
Incomereg = Payreg,cap + Payreg,perf ………………..(3)
22
23
24
(a)With PBR Payment, (b)Without PBR Payment
My Understanding based on this
25
1 . Capacity of storage during 8 am or 12-1 pm
is higher when we are considering PBR(there is a
dip when PBR isn’t considered)
My Understanding based on this
26
1 . Capacity of storage during 8 am or 12-1 pm
is higher when we are considering PBR(there is a
dip when PBR isn’t considered)
2 . Regulation bids predominates when we aren’t
considering PBR otherwise regulation bids.
My Understanding based on this
27
1 . Capacity of storage during 8 am or 12-1 pm
is higher when we are considering PBR(there is a
dip when PBR isn’t considered)
2 . Regulation bids predominates when we aren’t
considering PBR otherwise regulation bids.
3 . There is negative energy bids as various BESS
are charging.
My Understanding based on this
28
1 . Capacity of storage during 8 am or 12-1 pm
is higher when we are considering PBR(there is a
dip when PBR isn’t considered)
2 . Regulation bids predominates when we aren’t
considering PBR otherwise regulation bids.
3 . There is negative energy bids as various BESS
are charging.
US Power Market Framework 29
1 . FEDERAL ENERGY REGULATORY COMMISSION (FERC)
2 . Independent System Operators (ISO) e.g. NYISO,CAISO
RTO (Regional Transmission Organization)
Pennsylvania - New Jersey – Maryland Interconnections (PJM)
What is FERC ? 30
It’s the United States federal agency that regulates the transmission and wholesale sale of
electricity and natural gas in interstate commerce and regulates the transportation of oil
by pipeline in interstate
Function of ISO/RTO 31
Coordinate generation and transmission across a wide geographic area
Matching generation instantaneously to the market demand for electricity
Maintaining an optimal transmission grid requires management of the flow of
power across the power grid
Understands the capabilities of the system & manages of payments among
producers, marketers, transmission owners, buyers, and others
Play a large role in grid reliability
Load forecasting & scheduling
Is PJM an ISO? 32
PJM is a regional transmission organization that coordinates the
movement of wholesale electricity in all or parts of Delaware, Illinois,
Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina,
Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of
Columbia.
Is PJM an ISO? 33
PJM is a regional transmission organization that coordinates the
movement of wholesale electricity in all or parts of Delaware, Illinois,
Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina,
Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of
Columbia.
Established in 1956, PJM became a fully functioning ISO in 1996 and, in
1997, it introduced markets with bid-based pricing and locational market
pricing (LMP).
Does ISO comes under FERC? 34
Some works independently like Canada &
Central Texas
35
Indian System 36
Energy–Only Market
37
Customer Choice provision
Confidence for INVESTORS
Resource Adequacy
Capacity Market 38
Proposed Structure of BESS Charging 39
Bids & Discharging Offers
BESS Bids 40
BESS Participation Structure 41
During Charging
During Discharging
In idle condition
In Charging Condition 42
BESS submits bids during charging in high price
BESS buys energy from market during charging
Amount of charging depends upon the β(charging)
In Discharging Condition 43
BESS submits offer to market during discharging BESS sells
energy to market during discharging
Amount of discharging depends upon the β(discharging)
parameter
Discharging price depends upon a,b,c,d coefficients as well
C = aSOCk + bSOCk-1+ cDCRk + d
Spinning Reserve Offers 44
BESS submits offer to spinning reserve market
during both charging & discharging
Depends on parameter β(spinning reserve)
45
46
Market Clearing Price 47
SURPLUS
SHORTAG
E
Energy market clearing price 48
49
CONSTRAINTS
Market Clearing Constraints
BESS Energy Arbitrage Constraints
BESS Spinning Reserve Market Clearing Constraints
BESS operational Constraints
System Spinning Reserve Constraints
All Day Aggregate Market Clearing
Results 50
Case 1 : Without BESS
Participation
Case 2 : With Bid/offer model
(BESS Participation)
Case 3 : Proposed bid/ Offer model
(BESS Participation &
degradation cost is accounted)
Generator Dispatch in 24 hours in Case 1 51
& Case 3
Spinning Reserve contracted over 24 hours 52
in
Case 1 & Case 3
Scopes 53
Optimal bidding strategy decision making model
Model related to maximizing social welfare
Optimal operation of BESS
Short-term scheduling of BESS
54
Thank You
