Procurement of Energy, Primary Regulation, and Secondary Regulation Reserves in Battery Energy Storage Systems Integrated Real-Time Electricity Markets

Abstract

In recent years, battery energy storage systems (BESS) have been considered as promising resources to provide regulation services because of their operational flexibility. In this article, a novel framework and mathematical model are proposed for simultaneously procuring primary regulation (PR) and secondary regulation (SR) reserves alongside energy, in a BESS integrated, locational marginal price (LMP) based real-time market. The BESS submits discharge offers considering degradation cost, based on depth of discharge and discharge rate. The proposed model takes into consideration <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">a priori</i> cleared day-ahead market (DAM) schedules and accounts for scenarios of load deviations and contingencies in real-time operations. The impact of BESS participation on system operation and market settlement is examined considering two participation options: 1) BESS bidding as the generator/load with price quantity pair; 2) BESS participation using the offers based on degradation cost. The proposed model is validated on the IEEE Reliability Test System to demonstrate its functionalities.