Optimal Scheduling of Battery Storage Systems in the Swedish Multi-FCR Market Incorporating Battery Degradation and Technical Requirements

TL;DR

This paper presents a MILP model for optimizing battery storage participation in Swedish FCR markets, considering degradation and technical constraints, demonstrating potential profits and reduced aging costs.

Contribution

It introduces a detailed MILP model that incorporates battery degradation and market requirements for optimal FCR participation in Sweden.

Findings

Potential profit of 708,000 Euros for a 1MW/1MWh BESS.

Considering degradation reduces aging costs by 5%-29%.

Model enables sustainable and profitable battery operation strategies.

Abstract

This paper develops a novel mixed-integer linear programming (MILP) model for optimal participation of battery energy storage systems (BESSs) in the Swedish frequency containment reserve (FCR) markets. The developed model aims to maximize the battery owner's potential profit by considering battery degradation and participation in multiple FCR markets, i.e., FCR in normal operation (FCR-N), and FCR in disturbances (FCR-D) for up- and down-regulations. Accordingly, a precise formulation of a detailed battery degradation model and adherence to the technical requirements of the Swedish FCR markets are incorporated into the developed model. To achieve more practical results, simulations are conducted based on one minute time step realistic data for the whole year 2022. The results show a potential profit of 708 thousand Euros for a 1MW/1MWh BESS by participating in multi-FCR market. Analyzing the impact of considering degradation in the optimization problem has shown that the annual battery aging cost could decrease by 5%-29% without a significant effect on profit. The proposed model can be practically used by flexibility asset owners to achieve profitable and sustainable operation strategies that reduce battery degradation.