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System cost-minimizing scheduling of battery energy storage systems providing energy and balancing services
KTH, School of Electrical Engineering and Computer Science (EECS), Electrical Engineering, Electric Power and Energy Systems.ORCID iD: 0000-0002-2789-0096
KTH, School of Electrical Engineering and Computer Science (EECS), Electrical Engineering, Electric Power and Energy Systems.ORCID iD: 0000-0002-8189-2420
KTH, School of Electrical Engineering and Computer Science (EECS), Electrical Engineering, Electric Power and Energy Systems.ORCID iD: 0000-0002-9998-9773
2025 (English)In: Sustainable Energy, Grids and Networks, E-ISSN 2352-4677, Vol. 43, article id 101820Article in journal (Refereed) Published
Abstract [en]

To ensure that battery energy storage systems (BESSs) are used to facilitate the operation of power systems with high shares of variable renewable energy (VRE) sources, new policies for BESSs are currently being designed. This paper presents a new model for the system cost-minimizing scheduling of BESSs providing energy and balancing services, which can be used as a policy-evaluation tool and as a benchmark for evaluating current market performance. The model is based on a stochastic optimization problem, which we suggest solving using an algorithm combining Benders Decomposition (BD) and Stochastic Dual Dynamic Programming (SDDP). In this paper, we apply the model to study how the system cost-minimal scheduling of BESSs in Sweden is impacted by new requirements for Limited Energy Reservoir (LER) resources providing Frequency Containment Reserves (FCR). Case study results show that new requirements related to guaranteeing a minimum full activation time significantly impact the operation of BESSs, reducing the provision of upregulating FCR capacity for disturbances (FCR-D up) by over 60 %. Also, the case study results show that the consideration of BESSs’ degradation costs reduces the provision of energy as well as balancing services from BESSs. The daily discharged energy from BESSs is more than 85 % lower if the degradation costs are considered, compared to if they are not considered.

Place, publisher, year, edition, pages
Elsevier BV , 2025. Vol. 43, article id 101820
Keywords [en]
Battery energy storage systems, Benders decomposition, Frequency containment reserve (FCR), Stochastic dual dynamic programming (SDDP), Stochastic optimization
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering Energy Engineering
Identifiers
URN: urn:nbn:se:kth:diva-368573DOI: 10.1016/j.segan.2025.101820ISI: 001542835700003Scopus ID: 2-s2.0-105011984390OAI: oai:DiVA.org:kth-368573DiVA, id: diva2:1990607
Note

QC 20250820

Available from: 2025-08-20 Created: 2025-08-20 Last updated: 2025-10-09Bibliographically approved
In thesis
1. Continuous Balancing of Power Systems With High Shares of Wind and Solar Power: Methods for Estimation of Needs and Efficient Use of Balancing Services in Future Electricity Markets
Open this publication in new window or tab >>Continuous Balancing of Power Systems With High Shares of Wind and Solar Power: Methods for Estimation of Needs and Efficient Use of Balancing Services in Future Electricity Markets
2025 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Transmission System Operators (TSOs) are responsible for maintaining the continuous balance in power systems, ensuring that intended electricity production matches demand in real time. To achieve this, they procure balancing services, i.e., resources that can adjust their production or consumption in response to system needs. The growing shares of Variable Renewable Energy (VRE) sources increase the operational uncertainty and variability, creating new challenges related to continuous balancing. At the same time, emerging flexible technologies and stronger European cooperation offer new opportunities to address these challenges. These developments make the efficient use and design of balancing services in VRE-dominated systems an urgent research topic. This thesis presents a series of research works focusing on the future needs for, and efficient use of, balancing services in power systems with high shares of wind and solar power.

The thesis first presents a comparative analysis of continuous balancing strategies in six power systems with ambitious VRE targets. The findings indicate that there appears to be no single solution to continuous balancing at high VRE shares, and that a broad set of technologies needs to contribute to the future continuous balancing.

Then, the Power Imbalance Model (PIM) is introduced as a new simulation framework for generating 1-minute resolution power imbalance scenarios. By using economic dispatch results as input data, PIM generates imbalance scenarios by detailed modelling of power system technologies, enabling both long-term assessment of balancing needs and generation of realistic input data for operational mechanisms.

Next, the thesis evaluates the benefits of a dynamic dimensioning approach for Frequency Restoration Reserves (FRR) in the Nordic area, using a newly developed FRR dimensioning model that incorporates chance-constrained optimization and PIM data. The results demonstrate that dynamic dimensioning adapts reserve requirements to operating conditions more efficiently, maintaining the operational reliability at the desired level.

Thereafter, a new market clearing mechanism for the Nordic manual FRR (mFRR) capacity market is proposed. By accounting for both capacity and expected activation costs, the mechanism yields considerable cost savings compared to current practices. The resulting optimization problem is efficiently solved with a tailored decomposition algorithm.

Finally, a stochastic optimization model for system cost-minimizing Battery Energy Storage System (BESS) scheduling is developed. This model is applied to analyze the impact of new requirements on Limited Energy Reservoir (LER) technologies providing Frequency Containment Reserves (FCR). Results indicate that such requirements considerably reduce the BESSs' FCR provision.

Overall, the thesis advances both the modeling tools and the design of operational mechanisms needed to ensure a reliable and cost-efficient continuous balancing of future European power systems with high VRE shares.

Abstract [sv]

Systemansvariga för transmissionsnät (TSO:er) ansvarar för att upprätthålla den kontinuerliga balansen i elsystem genom att säkerställa att den planerade elproduktionen motsvarar efterfrågan i realtid. För att uppnå detta upphandlar de balanstjänster, det vill säga resurser som kan justera sin produktion eller konsumtion efter systemets behov. En högre andel av variabla förnybara energikällor (VRE) ökar osäkerheten och variabiliteten i driften, vilket skapar nya utmaningar kopplade till den kontinuerliga balanseringen. Samtidigt erbjuder nya flexibla teknologier och ett starkare europeiskt samarbete nya möjligheter att möta dessa utmaningar. Dessa trender gör den effektiva användningen och utformningen av balanstjänster i VRE-dominerade system till ett viktigt forskningsområde. Denna avhandling presenterar en rad forskningsarbeten med fokus på framtida behov av, och effektiv användning av, balanstjänster i elsystem med höga andelar vind- och solkraft.

Avhandlingen presenterar först en jämförande analys av strategier för kontinuerlig balansering i sex elsystem som strävar mot en hög andel variabla förnybara energikällor. Resultaten visar att det inte verkar finnas någon enskild lösning för kontinuerlig balansering i dessa typer av elsystem och att ett brett spektrum av teknologier behöver bidra till den framtida kontinuerliga balanseringen.

Därefter introduceras Power Imbalance Model (PIM) som ett nytt simuleringsramverk för att generera effektobalansscenarier med en tidsupplösning på en minut. Genom att använda resultat från ekonomisk lastfördelning som indata genererar PIM obalansscenarier genom detaljerad modellering av elsystemets teknologier, vilket möjliggör både långsiktiga bedömningar av balanseringsbehov och generering av realistisk indata till driftrelaterade mekanismer.

Nästa del av avhandlingen utvärderar fördelarna med en dynamisk dimensioneringsmetod för frekvensåterställningsreserver (FRR) i Norden, med hjälp av en nyutvecklad FRR-dimensioneringsmodell som bygger på sannolikhetsbegränsad optimering och PIM-data. Resultaten visar att dynamisk dimensionering bättre anpassar reservbehoven till rådande driftförhållanden, vilket gör att driftsäkerheten hålls på den eftersträvade nivån.

Därefter föreslås en ny marknadsklareringsmekanism för den nordiska kapacitetsmarknaden för manuell FRR (mFRR). Genom att beakta både kapacitetskostnader och förväntade aktiveringskostnader kan mekanismen leda till betydande kostnadsbesparingar jämfört med nuvarande praxis. Det motsvarande optimeringsproblemet löses effektivt med en specifikt anpassad lösningsalgoritm.

Slutligen utvecklas en stokastisk optimeringsmodell för systemkostnadsminimerande driftplanering av batterisystem. Modellen används för att analysera effekten av nya krav på teknologier med en begränsad energireserv som tillhandahåller frekvenshållningsreserver (FCR). Resultaten visar att sådana krav avsevärt minskar batterisystems levererade FCR-volymer. 

Sammanfattningsvis bidrar avhandlingen med både nya modelleringsverktyg och utformning av nya driftrelaterade mekanismer, vilka behövs för att säkerställa en tillförlitlig och kostnadseffektiv kontinuerlig balansering av framtida europeiska elsystem med höga andelar VRE-resurser.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2025. p. xv, 126
Series
TRITA-EECS-AVL ; 2025:79
Keywords
Electricity Markets, Power System Balancing, Variable Renewable Energy, Balancing Services, Frequency Containment Reserve, Automatic and Manual Frequency Restoration Reserves, Imbalance Simulation, Reserve Dimensioning, Reserve Capacity Markets, Battery Scheduling, Stochastic Optimization, MILP, Decomposition Algorithms, Elmarknader, Kraftsystembalansering, Variabel Förnybar Energi, Balanstjänster, Frekvenshållningsreserv, Automatisk och Manuell Frekvensåterställningsreserv, Obalanssimulering, Reservdimensionering, Reservkapacitetsmarknader, Driftplanering av Batterier, Stokastisk Optimering, MILP, Nedbrytningsalgoritmer
National Category
Energy Systems Other Electrical Engineering, Electronic Engineering, Information Engineering
Research subject
Electrical Engineering
Identifiers
urn:nbn:se:kth:diva-371387 (URN)978-91-8106-379-0 (ISBN)
Public defence
2025-11-10, https://kth-se.zoom.us/s/61811645829, Kollegiesalen, Brinellvägen 8, Stockholm, 10:00 (English)
Opponent
Supervisors
Funder
Swedish Energy Agency, 51292-1Swedish National Grid, 51292-1
Note

QC 20251010

Available from: 2025-10-10 Created: 2025-10-09 Last updated: 2025-10-20Bibliographically approved

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Nordström, HenrikSöder, LennartHesamzadeh, Mohammad Reza

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