Virtual Energy Storage Systems and their Participation in Day-ahead and Flexibility Markets

The rising concept of the Virtual Energy Storage System (VESS) within the energy storage systems (ESS) landscape is indicative of its innovative features, marked by exceptional efficiency and reliability. The unpredictable and stochastic nature of renewable energy sources (RES) has posed challenges to the grid’s flexibility. Utilizing ESS can contribute to overcoming this issue. In response to this, this research puts forth a framework designed to optimize the operation of a multi-carrier VESS. The VESS consists of batteries, thermal storage systems and responsive loads. The responsive loads contain both electrical and thermal loads, leveraging its similarities to the behavior of physical ESS. From a market perspective, the study considers the involvement of three key participants: the electrical market, the thermal market, and the flexibility market, reflecting the multifaceted nature of energy storage requirements. Operational constraints are factored in during the optimization, allowing for a comprehensive evaluation of the operational costs linked to different ESS configurations. The culmination of these efforts involves simulations conducted within the GAMS environment, offering a detailed and insightful analysis of the proposed VESS framework. Through this approach, the study contributes valuable knowledge to the ongoing discourse on optimizing energy storage systems in the context of evolving smart grids.