Optimal Participation of Price-Maker Battery Energy Storage Systems in Energy, Reserve and Pay as Performance Regulation Markets

Reza Khalilisenobari, Meng Wu

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

2 Scopus citations

Abstract

Motivated by the need of assessing the optimal allocation of battery energy storage services across various markets and the corresponding impact on market operations, an optimization framework is proposed in this work to coordinate the operation of an independent utility-scale price-maker battery energy storage system (BESS) in the energy, spinning reserve and performance-based regulation markets. The entire problem is formulated as a bi-level optimization process, where the structure of all markets is modeled considering the joint operation limits. The strategic bidding behavior of a price-maker BESS in a pay as performance regulation market is investigated. Additionally, a specific approach is introduced for modeling automatic generation control (AGC) signals in the optimization. Although the formulated problem is non-linear, it is converted to mixed-integer linear programming (MILP) to find the optimum solution. The proposed framework is evaluated using test case scenarios created from real-world market data. Case study results show the impact of BESS's price-making behavior on the joint operation of energy, reserve, and regulation markets.

Original languageEnglish (US)
Title of host publication51st North American Power Symposium, NAPS 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728104072
DOIs
StatePublished - Oct 2019
Event51st North American Power Symposium, NAPS 2019 - Wichita, United States
Duration: Oct 13 2019Oct 15 2019

Publication series

Name51st North American Power Symposium, NAPS 2019

Conference

Conference51st North American Power Symposium, NAPS 2019
CountryUnited States
CityWichita
Period10/13/1910/15/19

Keywords

  • Battery energy storage system (BESS)
  • bidding strategy
  • bilevel optimization
  • mixed integer linear programming
  • performance-based regulation market
  • price-maker

ASJC Scopus subject areas

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

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