Sizing of Battery Storage Systems to Mimic the Operation of RES-based VPPs in Electricity Markets

Abstract

The presence of large-scale Battery Energy Storage Systems (BESSs) in the grid is increasing at a quick pace, mainly to facilitate the process of the also increasing penetration of Renewable Energy Sources (RESs). However, BESSs are not exempt from caveats and limitations. In this regard, the interest in coordinating already installed resources in the form of RES-only Virtual Power Plant (RVPP) for energy market participation and ancillary services provision is rapidly growing. This paper determines the size of BESS needed to achieve similar economic performance as an RVPP in the energy and ancillary service markets for different levels of uncertainty and weather conditions. Uncertainties related to electricity markets, as well as RVPP RES units and demands, are considered in the RVPP optimization problem.