Frontiers in Energy Research (Oct 2024)
Optimal scheduling strategies for electrochemical energy storage power stations in the electricity spot market
Abstract
IntroductionThis paper constructs a revenue model for an independent electrochemical energy storage (EES) power station with the aim of analyzing its full life-cycle economic benefits under the electricity spot market.MethodsThe model integrates the marginal degradation cost (MDC), energy arbitrage, ancillary services, and annual operation and maintenance (O&M) costs to calculate the net profits of the EES power station. Using an iterative optimization approach, we determine the optimal MDC and analyze the economic end of life (EOL) for different types of EES power stations.ResultsBy examining real-world examples from the California energy market, we find that the full life-cycle benefits of an EES power station peak when its MDC is optimal, at $45/MWh-throughput. Under these conditions, the economic and physical EOL of commercial/industrial EES power station is 9 years, while the economic EOL of residential-grade EES power station is 8 years, which is shorter than their physical EOL of 9 years.DiscussionThe study further indicates that the economic life of an EES power station is influenced by multiple factors, and operators need to determine the optimal economic EOL to maximize revenue based on battery degradation characteristics, market conditions and operational strategy.
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