Integrating Photovoltaics and Battery Energy Storage Systems under Corporate Power Purchase Agreements and Market Exposure

The integration of photovoltaic with Battery Energy Storage Systems under corporate Power Purchase Agreements presents opportunities for renewable energy producers to enhance their financial and operational performance. This paper investigates the economic viability and strategic benefits of such integration, emphasizing the importance of optimal Battery Energy Storage Systems sizing and advanced market participation strategies. By employing probabilistic Bayesian Long Short-Term Memory network for long-term photovoltaic power output forecasting, we enable the Renewable Energy Producer to manage risk and secure stable power supply contracts. Our analysis demonstrates that maximum profitability is achieved with a safety level of z = 2 and battery duration of two hours, with annual profit of 1.08 million euros in non-congested market conditions. In congested markets, the strategy proves resilient, maintaining substantial profitability. The study underscores the critical role of accurate forecasting, robust market analysis, and strategic decision-making in optimizing the financial outcomes of co-located installations.