BESS and the ancillary services markets: A symbiosis yet? Impact of market design on performance

Abstract

The evolution of ancillary services markets (ASM) and balancing products is ongoing. The aim of the evolution is to integrate the products over the national boundaries and to open the ASM to distributed energy resources (DERs). Among DERs, battery energy storage systems (BESS) are increasing their importance. In this work, we investigate by means of numerical simulations the effect of different evolutions in the regulatory framework on the performance of a BESS providing ancillary services. The analyzed regulatory barriers are selected based on ongoing evolution in EU market design. The following parameters are involved: power vs energy-intensive services, symmetry of procurement, time definition and distance to delivery. The considered case study is a BESS associated to a large-scale energy district including load, a cogeneration plant, and a PV plant. Results are given in terms of energy flows, economics, operational efficiency, and reliability of service provision. Where both reliability, provision of large flexibility volumes, and good economic performance are achieved, we say that there is a symbiosis between BESS and the markets. This way, the best ASM arrangements abating regulatory barriers for BESS are defined.