Frequency Regulation with Storage: Analyzing Profitability and Losses

Основні поняття

Analyzing the profitability and losses associated with frequency regulation using storage devices.

Анотація

The content delves into the economic aspects of frequency regulation with storage devices, focusing on the trade-offs between profits and losses. It provides insights into the decision-making process for storage operators selling frequency regulation power and trading electricity on day-ahead markets. The analysis considers factors such as roundtrip efficiency, frequency deviation dispersion, and regulatory changes impacting profitability.
The content is structured as follows:

1. Introduction to Frequency Regulation
2. Importance of Storage Devices in Frequency Regulation
3. Profitability Analysis and Key Research Questions
4. Methodological Development and Assumptions
5. Reduction to a Deterministic Optimization Problem
6. Candidate Solutions and Feasible Set Analysis
7. Analytical Solution Using Discrete Distributions
8. Calculation of Optimal Solutions and Sensitivities

Статистика

Low-carbon societies require vast electricity storage for balancing intermittent generation.
Lithium-ion batteries are promising for frequency regulation due to fast dynamics and cost decline.
Studies suggest profitability in investing in lithium-ion batteries for frequency regulation.

Цитати

"Electricity storage could help fill the gap in frequency regulation as power generation becomes more weather-dependent."
"The profits from frequency regulation are inversely proportional to the commitment time for regulation power."

Ключові висновки, отримані з

Frequency Regulation with Storage

by Dirk... о arxiv.org 03-27-2024

https://arxiv.org/pdf/2306.02987.pdf

Глибші Запити

How can regulatory changes enhance the profitability of frequency regulation with storage

Regulatory changes can significantly enhance the profitability of frequency regulation with storage. One way is by making it easier for small-scale storage operators to access wholesale electricity markets. By reducing barriers to entry and providing incentives for participation, more storage operators can engage in frequency regulation, increasing competition and potentially lowering costs. Another regulatory change that can boost profitability is establishing an intraday market for frequency regulation. This would allow for more flexibility in trading electricity based on real-time demand and supply conditions, potentially leading to higher profits for storage operators.

What are the implications of charging and discharging losses on frequency regulation profits

Charging and discharging losses have significant implications on frequency regulation profits. These losses impact the efficiency of the storage device, affecting the amount of electricity that can be stored and discharged. Higher losses result in lower overall profits from providing frequency regulation. The losses increase with the roundtrip efficiency of the storage device and the dispersion of frequency deviations. This means that storage operators need to carefully consider these factors when determining the amount of regulation power to offer to grid operators to maximize profits over the lifetime of the storage device.

How does the assumption of no battery degradation impact the analysis of frequency regulation economics

The assumption of no battery degradation simplifies the analysis of frequency regulation economics but may not reflect the real-world scenario accurately. In reality, battery degradation can have a significant impact on the profitability of frequency regulation with storage. Different storage technologies experience varying levels of degradation, which can affect the overall performance and longevity of the storage device. Ignoring battery degradation in the analysis may lead to overestimating profits and underestimating the costs associated with providing frequency regulation. It is essential for storage operators to consider battery degradation factors in their decision-making processes to ensure the economic viability of frequency regulation with storage in the long run.