Abstract

Centralised, front-of-the-meter battery energy storage systems are an option to support and add flexibility to distribution networks with increasing distributed photovoltaic systems, which generate renewable energy locally and help decarbonise the power sector. However, the provision of specific services at distribution level remains under development for real applications in industry. To this end, this paper presents an exhaustive techno-economic analysis of the role of front-of-the-meter battery energy storage systems in primary distribution networks with presence of distributed PV covering: (i) the siting decision for storage systems using multi-objective genetic algorithm optimisation; (ii) the response when smart capabilities for PV inverters (e.g., volt-var control) are present; and (iii) the quantification of revenue streams and compensation schemes that would bring positive profitability when providing distribution-specific services based on the supply of real and reactive power. The performance of grid-level battery energy storage technology is evaluated in the IEEE 34-bus system particularised to the distribution code of Northern Ireland, UK. The techno-economic assessment covers one year of simulations at 1-minute resolution performed with the simulation tool EPRI OpenDSS and its Python communication interface. The results show that, besides the technical benefits of centralised battery storage systems, the economic compensation based on traditional transmission-level services is not sufficient for the profitability of these projects. Several ideas are explored to improve the profitability of these systems considering the local value and decarbonisation they add. The findings presented can direct system operators and regulators towards developing schemes to incentivise centralised battery energy storage projects in distribution networks in the context of distribution-level services.

Highlights

  • S OLAR photovoltaic (PV) technology has experienced the largest annual capacity additions since 2016 when compared to other major renewable energy technologies [1]

  • The variability and intermittency of solar PV systems can be mitigated with distributed storage systems, which permit a reduction of renewable energy curtailment and help operate stably low-inertia power systems, from microgrids to large systems, with high shares of non-synchronous variable re

  • The results show that the extra PV hosting capacity enabled by the grid-level storage increases the avoided cost by 0.4% (2,511.11 GBP) in the PV power factor (PF) + battery energy storage systems (BESS) case compared to the PV PF case, and by 9.7% (63,261.03 GBP) in the PV VV + BESS case

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Summary

INTRODUCTION

S OLAR photovoltaic (PV) technology has experienced the largest annual capacity additions since 2016 when compared to other major renewable energy technologies (i.e., hydro and wind) [1]. Grid-scale systems have a more favourable position economically than smaller-range microgeneration systems due to the possibility to provide grid services and participate in electricity markets [13] In these systems, the high cost of BESS drives the need for optimising the location and capacity (a.k.a. the siting and sizing problem of energy storage systems), and operation of the batteries [4]. The assessment moves into the role of centralised BESS in the network by looking at: (i) its effect in the maximum PV hosting capacity; (ii) its role when smart PV inverters using Volt-Var control are present in the distribution network; (iii) its provision of flexibility through real and reactive power supply; and (iv) its equivalent economic revenue as part of energy markets.

METHODOLOGY
CONSIDERATIONS FOR THE ECONOMIC ASSESSMENT OF THE NETWORK
VOLTAGE VIOLATIONS IN THE NETWORK
OPERATION OF IN-LINE VOLTAGE REGULATORS
SUMMARY OF THE TECHNICAL PERFORMANCE RESULTS
SENSITIVITY ANALYSIS FOR GRID-LEVEL BESS
SENSITIVITY TO MACRO-ECONOMIC PARAMETERS
SENSITIVITY TO BESS SIZE
DISCUSSION
Findings
VIII. CONCLUSION AND FUTURE WORK
Full Text
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