Modeling the influence of installed battery energy storage systems on the German frequency containment reserve market
Conference: NEIS 2017 - Conference on Sustainable Energy Supply and Energy Storage Systems
09/21/2017 - 09/22/2017 at Hamburg, Deutschland
Proceedings: NEIS 2017
Pages: 7Language: englishTyp: PDF
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Authors:
Badeda, Julia (Electrochemical Energy Conversion and Storage Systems Group, Institute for Power Electronics and Electrical Drives (ISEA), RWTH Aachen University, Germany & BatterieIngenieure GmbH, Aachen, Germany)
Meyer, Jonas (Electrochemical Energy Conversion and Storage Systems Group, Institute for Power Electronics and Electrical Drives (ISEA), RWTH Aachen University, Germany & Institute for Power Generation and Storage Systems (PGS), E.ON ERC, RWTH Aachen University, Germany)
Sauer, Dirk Uwe (Electrochemical Energy Conversion and Storage Systems Group, Institute for Power Electronics and Electrical Drives (ISEA), RWTH Aachen University, Germany & Institute for Power Generation and Storage Systems (PGS), E.ON ERC, RWTH Aachen University, Germany & Jülich Aachen Research Alliance, JARA-Energy, Germany)
Abstract:
This paper uses the basic principal of agent based market simulation to investigate the effect of a diminishing number of conventional thermal power stations and an increasing number of installed BESS on the frequency containment reserve (FCR) market price. As the structure of FCR market participants can have a huge impact on future prices and economic viability of recent investments the conducted analysis takes various sensitivities such as expected lifetime and cost assumptions for BESS into account. Results show the interdependency between an increasing number of BESS and decreasing average prices on the FCR market while the degree of price degression is sensitive to several factors. An extreme scenario with overinvestment in BESS even shows a massive FCR price fall. However, if market participants take the elementary signals into account for their investment decisions the capacity of installed batteries and thus the price decline is limited. The goal of this work is to identify those parameters that have the greatest influence on the investment in BESS and subsequently use these as input for more sophisticated market simulations.