Payment Analysis for a BESS Providing Dynamic Frequency Response in the Irish Grid

Abstract

The increased uptake of renewable energy generation has lead to a growing interest in grid-connected energy storage systems, such as batteries and flywheels, for maintaining grid stability. A number of countries have developed schemes for the provision of frequency response services, with some grid operators, such as National Grid in Great Britain and Eiregrid in Ireland, having a range of static and dynamic services. For the provision of dynamic services, the use of tighter frequency margins, which results in the unit providing frequency response more regularly and in higher volumes, may be incentivised through higher payments. One example of such a scheme is in Ireland under the Eiregrid DS3 programme, where a tariff system that incorporates both the performance and frequency margins of units providing dynamic response has been introduced. This paper examines how the choice of frequency margins affects overall payments for Battery Energy Storage Systems (BESS) operating in the Irish grid. Analysis is performed by simulating the BESS system using Irish grid frequency data. The results provide insights into how the frequency margins affect payments for different frequency response services, and show how payments to a BESS providing dynamic frequency response are maximised.