Stacked Revenue and Technical Benefits of a Grid-Connected Energy Storage System

This paper proposes a comprehensive evaluation of stacked revenue generated from grid-connected energy storage systems (ESSs). The stacked revenue from an ESS cannot be calculated by merely aggregating the benefits from various applications (e.g., energy arbitrage, frequency regulation, and outage mitigation) as the ESS may not be available for all types of applications during the same time intervals. This is because a quantity committed to one market may not be committed to another. In this paper, different types of applications for grid-connected ESSs are identified, and a model incorporating component reliability, power system operation constraints, and storage system operation constraints is developed to evaluate the composite revenue generated from these applications. In this model, the types of applications of ESSs are prioritized according to their intended contributions and system operating conditions. Sequential Monte Carlo simulation is used for evaluating the reliability improvement and a quadratically constrained linear programing model is built for estimating the maximum revenue from arbitrage and regulation markets. The proposed method is demonstrated on the IEEE reliability test system using historical PJM price data.