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ORIGINAL RESEARCH article

Front. Energy Res.
Sec. Smart Grids
Volume 12 - 2024 | doi: 10.3389/fenrg.2024.1469594
This article is part of the Research Topic Advanced Data-Driven Uncertainty Optimization for Planning, Operation, and Analysis of Renewable Power Systems View all 6 articles

Optimal Scheduling Strategies for Electrochemical Energy Storage Power Stations in the Electricity Spot Market

Provisionally accepted
Yuanyuan Li Yuanyuan Li 1Shuyan Zhang Shuyan Zhang 1*Luye Yang Luye Yang 2Qihang Gong Qihang Gong 2Xiaojing Li Xiaojing Li 2Biwu Fan Biwu Fan 2
  • 1 China Electric Power Research Institute (CEPRI), Beijing, China
  • 2 PKU-Changsha Institute for Computing and Digital Economy, Changsha, China

The final, formatted version of the article will be published soon.

    This paper constructs a revenue model for an independent electrochemical energy storage (EES) power station with the aim of analyzing its full life-cycle economic benefits under the electricity spot market. The model integrates the marginal degradation cost (MDC), energy arbitrage, ancillary services, and annual operation and maintenance (O&M) costs to calculate the net profits of the EES power station. Using an iterative optimization approach, we determine the optimal MDC and analyze the economic end of life (EOL) for different types of EES power stations. By examining real-world examples from the California energy market, we find that the full life-cycle benefits of an EES power station peak when its MDC is optimal, at $45/MWh-throughput. Under these conditions, the economic and physical EOL of commercial/industrial EES power station is 9 years, while the economic EOL of residential-grade EES power station is 8 years, which is shorter than their physical EOL of 9 years. The study further indicates that the economic life of an EES power station is influenced by multiple factors, and operators need to determine the optimal economic EOL to maximize revenue based on battery degradation characteristics, market conditions and operational strategy.

    Keywords: electricity spot market, electrochemical energy storage, Profit model, energy arbitrage, economic end of life

    Received: 24 Jul 2024; Accepted: 13 Sep 2024.

    Copyright: © 2024 Li, Zhang, Yang, Gong, Li and Fan. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Shuyan Zhang, China Electric Power Research Institute (CEPRI), Beijing, China

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.