Potential utilization of battery systems is promising in Europe for frequency regulation services. Given the declining cost of battery technology in the last decade, nowadays the application of Battery Energy Storage Systems (BESS) becomes a more attractive solution in electrical power systems.
Among all the energy storage technologies, battery technologies, especially the Li-ion battery, have experienced considerable cost reduction in the last years. Therefore, the application of Battery Energy Storage Systems (BESS) becomes a more attractive solution in electrical power systems.
Potential utilization of battery systems is evaluated using utilization factors. Battery systems are not feasible for energy arbitrage in the current European electricity markets. Potential utilization of battery systems is promising in Europe for frequency regulation services.
In Nordic electricity markets, Heine et al. and Hellman et al. tested an industrial-sized BESS for providing frequency control services in Finland and proved that the availability of the battery system could be considerably improved with optimized charging and discharging strategies.
For energy arbitrage, typical 1.2-hour and 2-hour battery systems with 1 MW/1.2MWh and 1 MW/2MWh capacity, respectively, are selected as examples.
In this study, we consider the marginal OPEX to be 3€/MWh covering the battery operation, maintenance, and market transition cost based on the empirical experience.