Abstract
Battery Energy Storage Systems (BESSs) provide a crucial solution for mitigating the challenges posed by renewable energy intermittency, concurrently driving down energy costs within wholesale markets. To harness their potential, innovative business models are required for optimal BESS operation and revenue maximisation. This paper addresses this need by proposing a novel revenue stacking approach for the participation in Day-Ahead and automatic Frequency Restoration Reserve (aFRR) markets. By considering the uncertainty in the activation of aFRR events, the proposed model provides real-time delivery guarantees for a given reliability level, while maximising the revenues. The model is built over a novel characterisation of the uncertainty and a tight reformulation of the joint chance-constraints that drive energy and capacity guarantees. The effectiveness of the proposed approach is demonstrated through a case study based on real data from the Belgian market, yielding a 17.3% increase in profits over the individual chance-constraints approach.
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