In response to growing power demand and rising environmental awareness, renewable energy (RE) resources are becoming increasingly common. However, the power output of RE is intermittent, as it strongly depends on the weather conditions; this increases the difficulties for the system operator (SO) to maintain the system frequency. This paper proposes an optimal sizing and operating strategy for a battery energy storage system (BESS) which integrates with virtual synchronous generator (VSG) technologies to participate in ancillary service (AS) market. The proposed method improves the traditional dual-stage architecture of BESS capacity planning problem to speed-up computation. However, the dimension and complexity of the optimization problem would increase accordingly. Therefore, the Electron Drifting Algorithm (eDA) is proposed to solve the proposed optimization problem and improve the quality of solution. To verify the feasibility, the IEEE 30-bus test system is employed for dynamic analysis by using the dynamic power system simulation software DIgSILENT PowerFactory. This paper provides a new business model to promote investments in BESS, not only yielding economic benefits, but also effectively increasing the robustness of the grid and further accommodating additional RE.
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