Management Strategies for BESS Storage Systems Participating in Joint Energy and Reserve Markets

BESS Energy Storage Systems (BESS) are increasingly recognized as crucial participants in the energy market, offering versatile grid services. To maximize profitability, this paper explores the opportunity to stack services while participating in the Day-Ahead market (DA) and the Frequency Containment Reserve (FCR) market. Look-ahead optimization is proposed assuming that energy and reserve prices and requirements are known to examine the interplay between DA and FCR products. In particular, two management strategies are proposed to provide the two services and hence evaluate the maximum theoretical profits assuming a perfect price forecast. Strategy (a) allows participation in only one service at each hour of the day. Strategy (b) enables the simultaneous provision of the two services all the time. Additionally, a baseline case is introduced while allowing the BESS to participate only in one market. The simulations use historical data to compute the DA energy and FCR schedule. Furthermore, a storage degradation analysis is performed to evaluate the effect of the predicted operations on the BESS lifetime, considering both cycling and calendar aging.