Hybrid energy storage

Abstract

As ports evolve into smart energy hubs, optimizing the integration and operation of battery energy storage systems (BESS) is crucial for ensuring cost efficiency and sustainability in the energy transition. This study firstly introduces a novel linearized bilayer two-stage stochastic planning (BTSP) framework for multi-technology BESS planning, considering four electrochemical technologies: lithium-ion, lead-acid, sodium-sulfur (NaS), and vanadium redox flow batteries (VRB). The first layer deals with data modeling and clustering using a novel hybrid adaptive clustering method, to improve the BTSP tractability. The second layer in the first stage determines the optimal siting, sizing, and technology selection of the BESS, aiming to minimize total system costs, including investment, environmental compliance, and distribution network service costs. Based on the results of the first stage, in the second stage, the operational scheduling of the BESS is optimized to maximize revenue from energy arbitrage and frequency containment reserve for disturbances (FCR-D) used for both upward and downward regulation. Simulations of a real-world port case study (Mussalo harbor) demonstrate the economic feasibility and benefits of the proposed BTSP, with the optimal solution corresponding to a 10 MW lithium-ion system at the selected location, yielding over €2.2 million in net profit across the five-year horizon, primarily from frequency regulation services. Secondly, a customer-based battery installation assessment is another study included in this report. The purpose of this study is to determine whether installing a battery based on a year of battery operation is beneficial for a particular industrial load or company. The battery system is assumed to generate revenue through market participation and arbitrage, with the targeted markets being the day-ahead spot market and the frequency containment reserve for normal operation (FCR-N) frequency regulation market.