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Revenue Maximization of a Wind Park and Battery Storage: Investigation of Frequency Power Reserve Markets through Mixed Integer Linear Programming
KTH, School of Electrical Engineering and Computer Science (EECS).
2024 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesisAlternative title
Intäktsmaximering för en Vindpark och Batterilager : Undersökning av frekvensreservmarknader genom blandad heltalslinjär programmering (Swedish)
Abstract [en]

As renewable electricity sources such as wind and solar continue to be integrated into the Nordic power grid, maintaining frequency stability is increasingly challenging due to the low inertial response of these sources. In response, system operators have expanded the procurement of ancillary services within power capacity and regulating markets to manage disturbances more effectively. Consequently, power producers in the Nordic electricity markets are evolving their bidding strategies towards frequency balancing markets. This study evaluates the impact of strategic bidding in capacity markets with a focus on up-regulation dispatch for a wind park. It particularly examines an extension from the Day-ahead market to participation in Fast Frequency Response (FFR) and Frequency Containment Reserve for Disturbances Upwards (FCR-D-Up). The findings indicate that by strategically utilizing the spinning reserve and curtailment for a wind farm, the revenue can be advanced from the the Day-ahead market to FFR by 0.97%, and to FCR-D-Up by 13.03%, with a combined increase of 13.12%. The integration of a Battery Energy Storage System (BESS), charged by the wind farm, furthers revenue growth by 18.76% across energy arbitrage, FCR-D-Up, and FFR markets, while also enhancing the reliability and overall performance of renewable energy systems.

Abstract [sv]

Integrationen av förnybar energi, såsom vind- och solkraft, utgör en utmaning för frekvensstabiliteten i det nordiska elnätet, främst på grund av avsaknaden av rotationsenergi. Detta kräver att de nordiska elmarknaderna utvecklar anpassningsbara strategier för elproducenter, vilka övergår från Day-ahead-marknaden till att omfatta stödtjänster och avhjälpande åtgärder. Studien utvärderar en potentiell budgivningsstrategi för uppreglering genom FFR och FCR-D-Upp för en vindpark. Resultaten visar att genom att utnyttja rotorernas kinetiska energi och reservera en del av produktionen, kan intäkterna från Day-ahead-marknaden för FFR öka med 0,97% och för FCR-D-Upp med 13,03%, med en sammanlagd ökning på 13,12%. En utvigdad analys genom att integrera ett batterilagringssystem till vindkraftsparkens anslutningspunkt ger resultatet att intäkter från energiarbitrage, FCR-D-Upp och FFR marknaderna totalt kan öka intäkterna med 18,76%.

Place, publisher, year, edition, pages
2024. , p. 50
Series
TRITA-EECS-EX ; 2024:678
Keywords [en]
Wind Farm Optimization, Battery Energy Storage Systems (BESS), Nordic Electricity Market, Ancillary Services, Fast Frequency Restoration, Frequency Containment Reserve - Disturbance Upwards
Keywords [sv]
Vindkraftsoptimering, Batterienergilagringssystem, Stödtjänster, Snabb frekvensreserv, Frekvenshållningsreserv störning uppreglering
National Category
Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
URN: urn:nbn:se:kth:diva-356144OAI: oai:DiVA.org:kth-356144DiVA, id: diva2:1911802
External cooperation
Siemens Gamesa
Supervisors
Examiners
Available from: 2025-01-20 Created: 2024-11-08 Last updated: 2025-01-20Bibliographically approved

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CiteExportLink to record
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