Impact of Battery Degradation on Market Participation of Utility-Scale Batteries: Case Studies

Reza Khalilisenobari, Meng Wu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

Abstract

The recent decrease in battery manufacturing costs stimulates the market participation of utility-scale battery energy storage systems (BESSs). However, battery degradation remains a major concern for BESS owners while determining their BESS investment and operation strategies. This paper studies the impact of battery degradation on BESS's operation and revenue/cost in real-time energy, reserve, and pay as performance regulation markets. Comparative case studies are performed on two optimization frameworks which model the participation of a price-maker BESS in energy and ancillary services markets with and without considering battery degradation cost. A synthetic test system built upon real-world data is adopted in the case studies. Analyses reveal that degradation cost plays an important role in the scheduling of BESSs and should not be neglected. Several potential enhancements to the optimization frameworks are discussed based on the performed analyses.

Original languageEnglish (US)
Title of host publication2020 52nd North American Power Symposium, NAPS 2020
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728181929
DOIs
StatePublished - Apr 11 2021
Event52nd North American Power Symposium, NAPS 2020 - Tempe, United States
Duration: Apr 11 2021Apr 13 2021

Publication series

Name2020 52nd North American Power Symposium, NAPS 2020

Conference

Conference52nd North American Power Symposium, NAPS 2020
Country/TerritoryUnited States
CityTempe
Period4/11/214/13/21

Keywords

  • battery degradation cost
  • Battery energy storage system (BESS)
  • case study
  • electricity markets
  • price-maker

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Control and Systems Engineering
  • Electrical and Electronic Engineering
  • Safety, Risk, Reliability and Quality
  • Hardware and Architecture
  • Computer Networks and Communications

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