Energy Storage Science and Technology ›› 2022, Vol. 11 ›› Issue (4): 1278-1288.doi: 10.19799/j.cnki.2095-4239.2022.0068

• Special issue of International Outstanding Young Scientists for Energy Storage • Previous Articles    

Energy storage-friendly frequency response service markets: The UK perspective

Fulin FAN1(), Junhui LI2(), CAMPOS-GAONA David1, Gangui YAN2   

  1. 1.Institute for Energy and Environment, University of Strathclyde, Glasgow G1 1XW, UK
    2.Key Laboratory of Modern Power System Simulation and Control & Renewable Energy Technology, Ministry of Education (Northeast Electric Power University), Jilin 132012, Jilin, China
  • Received:2022-02-15 Revised:2022-03-20 Online:2022-04-05 Published:2022-04-11
  • Contact: Junhui LI E-mail:f.fan@strath.ac.uk;lijunhui@neepu.edu.cn

Abstract:

To counterbalance the reduction of system inertia with increasing renewable generation, the frequency response (FR) service markets in the UK have been reforming to enable procurement from diverse technologies including energy storage systems (ESSs). The Enhanced FR product was introduced in 2016 to allow ESSs to manage the state of energy (SOE) within two envelopes. A two-year weekly auction trial was launched in 2019 to test closer-to-real-time procurement and reduce the financial risk of ESSs by evaluating their performance and payments in each week separately instead of an entire month. In addition, an integrated suite of end-state services has been successively released since 2020 with the phase-out of existing FR services so as to increase the standardisation and transparency of FR markets. The end-end services consisting of Dynamic Containment (DC), Dynamic Moderation (DM) and Dynamic Regulation (DR) deal with different frequency deviation levels and have a limited requirement on full-response duration, which mitigates the barrier to entry for ESSs. The SOE rules are additionally specified to indicate the cases in which ESSs will not be penalised for the under-delivery of DC, DM or DR. Based on the latest technical requirements and procurement/payment mechanisms of DM, this paper simulates the techno-economic operation of a grid-scale lithium-ion battery ESS (BESS) that provides DM to the AC grid while following its operational baselines to restore the SOE. The SOE levels and FR errors of the BESS are calculated to determine its compliance with the SOE rules and under-delivery penalties. Then the DM payment is compared with BESS costs to estimate the net present value at the end of the energy throughput-based lifetime, indicating the profitability of the BESS under the latest energy storage-friendly FR markets. The BESS operating strategy designed here fully considers the specific market mechanisms of end-state FR services, allowing the closer-to-real-time SOE management and meeting the required FR delivery. The specific and novel strategy design and the resulting simulation offer BESS developers with an insight into potential operating scenarios especially at the early stage of end-state FR service markets.

Key words: battery energy storage system, frequency response service markets, energy storage-friendly market reforms, UK perspective

CLC Number: