Resilience-enabling technologies (RETs), such as batteries, distributed generation and flexible demand, can be used to recover from, respond to, or anticipate high impact low probability (HILP) events. Increased investment in RETs is critical under the twin threats of climate change and cyber warfare since these - if unaddressed - increase the risk and severity of future HILP events. HILP events can lead to prolonged disruption of electricity supply to end users, which can reduce quality of life and undermine the operation of industries. Since Swedish grid users are entitled to compensation from the distribution system operator (DSO), there is a strong incentive for the grid owner to maximize resilience and minimize down time. To address the need to increase resilience at minimal cost, the interplay between the different energy markets, market rules and legislation in the Swedish energy grid for RETs is therefore mapped. A comparison is also made between the profitability of resilience-only, single-market and multi-market participation of a battery RET based on historical data and perfect information. Even when considering a 25% reserve capacity for resilience activation, the results show a greater return on investment for a battery RET when it is used in multiple markets, as opposed to pure grid reinforcements or single markets. They also highlight the need to update legislation in Sweden regarding islanded operation and energy arbitrage.
QC 20240118