Another use case for battery storage on microgrids is aggregating BESS as a virtual power plant (VPP) to correct imbalances in the utility grid. At the grid level, when the supply of power from renewables temporarily drops, utilities need to respond quickly to maintain equilibrium between supply and demand and stabilize the grid frequency.
Microgrids can be grid-tied, where the system is able to connect with a larger traditional grid, or standalone systems where there is no outside electrical connection. The Energy Systems Model and this paper focus only on standalone systems.
For example, if a battery is replaced when it falls to 80% of original capacity and microgrid operation requires a certain battery capacity, the battery must initially be oversized by 25% to maintain the desired capacity at the end of the battery’s life.
The Inflation Reduction Act incentivizes large-scale battery storage projects. And California regulations now require energy storage for newly constructed commercial buildings. The same microgrid-based BESS can serve either or both of these use cases.
Because of the fundamental uncertainties inherent in microgrid design and operation, researchers have created battery and microgrid models of varying levels of complexity, depending upon the purpose for which the model will be used.
Volatile energy markets, utility grid disruptions, and the rising awareness of climate change have created new energy challenges that require innovative answers. As a result, many organizations are embracing microgrids as a solution to the mounting problems.