TY - GEN
T1 - Profitability Analysis of Consumer Batteries Providing Frequency Containment Reserve
AU - Okur, Özge
AU - Heijnen, Petra
AU - Lukszo, Zofia
PY - 2019
Y1 - 2019
N2 - Consumer batteries, when bundled by an aggregator, can provide flexibility by being used for consumers self-consumption and by offering Frequency Containment Reserve (FCR). Combining these two can also generate additional revenues for consumers since the aggregator pays an allowance to the consumers for FCR, called FCR price. The aim of this paper is determine the optimal share of consumer batteries that should be reserved for self-consumption and FCR to minimize the consumer's cost, while considering various FCR prices and investment cost of batteries which is paid by either consumers or the aggregator. For this purpose, an optimization model is presented, and applied to a case study in the Netherlands. The results show the consumers annual cost is minimized by finding the optimal FCR share of batteries. Despite that, investing in the battery is still not profitable for the consumers, unless the aggregator invests in the batteries.
AB - Consumer batteries, when bundled by an aggregator, can provide flexibility by being used for consumers self-consumption and by offering Frequency Containment Reserve (FCR). Combining these two can also generate additional revenues for consumers since the aggregator pays an allowance to the consumers for FCR, called FCR price. The aim of this paper is determine the optimal share of consumer batteries that should be reserved for self-consumption and FCR to minimize the consumer's cost, while considering various FCR prices and investment cost of batteries which is paid by either consumers or the aggregator. For this purpose, an optimization model is presented, and applied to a case study in the Netherlands. The results show the consumers annual cost is minimized by finding the optimal FCR share of batteries. Despite that, investing in the battery is still not profitable for the consumers, unless the aggregator invests in the batteries.
KW - Aggregator
KW - battery
KW - Frequency Containment Reserve
KW - optimization
KW - renewable generation
UR - http://www.scopus.com/inward/record.url?scp=85075878616&partnerID=8YFLogxK
U2 - 10.1109/ISGTEurope.2019.8905626
DO - 10.1109/ISGTEurope.2019.8905626
M3 - Conference contribution
T3 - Proceedings of 2019 IEEE PES Innovative Smart Grid Technologies Europe, ISGT-Europe 2019
BT - Proceedings of 2019 IEEE PES Innovative Smart Grid Technologies Europe, ISGT-Europe 2019
PB - IEEE
T2 - 2019 IEEE PES Innovative Smart Grid Technologies Europe, ISGT-Europe 2019
Y2 - 29 September 2019 through 2 October 2019
ER -
