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Economic evaluation of battery storage systems participating in the day-ahead and automatic frequency restoration reserves markets

Nitsch, Felix and Deissenroth, Marc and Schimeczek, Christoph and Bertsch, Valentin (2020) Economic evaluation of battery storage systems participating in the day-ahead and automatic frequency restoration reserves markets. 8th International PhD Day of the AAEE Student Chapter, 08.10.2020, Online.

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The electricity system transformation requires fundamental changes in power plant parks. Ambitious targets for the reduction of green-house gas emissions do not only result in a change of electricity generation technologies, but also frequency stabilization has to be provided by low-carbon technologies. Batteries are a promising technology to fill this gap. However, uncertainties regarding the revenue potential of such use cases may hinder investments in such technologies. Therefore, we apply the agent-based electricity market model AMIRIS to simulate energy prices on the German day-ahead and automatic Frequency Response Reserve markets in order to assess the economic potential of storages participating in both markets. First, we compared our model results with historic data from 2019. The back-testing resulted in mean prices of 39.22 EUR/MWh in the simulation compared to mean historic price of 37.67 EUR/MWh showing a slightly higher price level for simulated prices. Second, we modelled the day-ahead market and capacity prices for the automatic frequency restoration reserves (aFRR) in a future scenario for Germany in 2030. The simulated day-ahead market prices are on average higher than historic values, although, we observe around 550 hours per year in which the load can be fully covered by renewable energies. We then evaluate the revenue potential of battery storage system operators selling their flexibility capacities in combined use on the day-ahead market and aFRR markets. Compared to historic market data, we see a reduced economic potential in our scenario. Regarding the technical specifications, we find that high power battery storage systems perform best in the presented scenario. Improvements in round-trip efficiency only marginally improve the annual revenues.

Item URL in elib:https://elib.dlr.de/137418/
Document Type:Conference or Workshop Item (Speech)
Title:Economic evaluation of battery storage systems participating in the day-ahead and automatic frequency restoration reserves markets
AuthorsInstitution or Email of AuthorsAuthor's ORCID iD
Nitsch, Felixfelix.nitsch (at) dlr.dehttps://orcid.org/0000-0002-9824-3371
Deissenroth, MarcMarc.Deissenroth (at) dlr.dehttps://orcid.org/0000-0002-9103-418X
Schimeczek, Christophchristoph.schimeczek (at) dlr.dehttps://orcid.org/0000-0002-0791-9365
Bertsch, ValentinUniversity of Bochumhttps://orcid.org/0000-0001-9477-4805
Date:8 October 2020
Refereed publication:No
Open Access:Yes
Gold Open Access:No
In ISI Web of Science:No
Keywords:energy system modelling, agent-based modelling, battery storage system, day-ahead market, automatic Frequency Restoration Reserves market
Event Title:8th International PhD Day of the AAEE Student Chapter
Event Location:Online
Event Type:international Conference
Event Dates:08.10.2020
Organizer:Austrian Association for Energy Economics
HGF - Research field:Energy
HGF - Program:Technology, Innovation and Society
HGF - Program Themes:Renewable Energy and Material Resources for Sustainable Futures - Integrating at Different Scales
DLR - Research area:Energy
DLR - Program:E SY - Energy Systems Analysis
DLR - Research theme (Project):E - Systems Analysis and Technology Assessment (old)
Location: Stuttgart
Institutes and Institutions:Institute of Engineering Thermodynamics > Energy Systems Analysis
Deposited By: Nitsch, Felix
Deposited On:04 Dec 2020 13:21
Last Modified:04 Dec 2020 13:21

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