Coordinated operation of pumped hydro energy storage with reversible pump turbine and co-located battery energy storage system

Abstract This publication examines the coordinated operation of pumped hydro energy storage and battery energy storage systems to improve profitability. While pumped hydro energy storages offer high storage capacity but have slower response times, battery energy storage systems have lower capacity but faster response times. A hybrid system combining both can thus harness synergies. A mixed-integer linear programming model was developed to depict the coordinated use of both systems in the German market. The proposed approach is also applicable to other regional markets where energy and balancing services are traded in a similar manner. In this model, the pumped hydro energy storage operates in the spot market and provides automatic Frequency Restoration Reserve, while the battery energy storage systems supplies Frequency Containment Reserve. The model takes into account the costs caused by degradation effects in both storage types. The results show a 10.05 % increase in revenue through coordination compared to the independent operation of both storage systems. This added value can be achieved through more efficient use of the power capacity, particularly that of the battery energy storage systems, in coordinated operation.