Batteries for fast frequency containment response: market impacts on outage dynamics

Abstract Traditional sources like hydro and thermal plants have a well-defined response for inertia and frequency containment during load outages, whereas inverter-interfaced battery systems offer more flexibility as ancillary services. This paper investigates interactions between sources of Frequency Containment Reserve (FCR) after an outage. By integrating a node model, market model, and inverter controller model, the German power plant fleet is simulated, incorporating various energy sources and k-factors. This setup evaluates how different battery participation rates in the FCR market influence system behavior and prices during an outage. The results show that battery storage systems, operating as grid-forming systems like Virtual Synchronous Machines, are particularly efficient for stabilizing frequency due to fast responses. This paper contributes to understanding how battery storage enhances grid stability and market efficiency.