Collaborative Optimization Strategy for Shared Energy Storage Station in Peak Shaving and Frequency Regulation

With the continuous increase of the penetration of renewable energy in the power system, the challenges associated with its integration, such as peak shaving and frequency regulation, have become more pronounced. Due to its unique source-load duality, energy storage (ES)plays a key role in increasing grid flexibility and alleviating the difficulties brought by the substantial penetration of renewable energy. In recent years, ES stations, especially shared energy storage (SES) stations, have developed rapidly in China. In this research, we study the collaborative optimization for SES station that offers frequency regulation and peak shaving ancillary services. This strategy enables SES to not only complete peak shaving tasks but also participate in secondary frequency regulation of the grid. In order to maximize the revenue from the ancillary services provided by the SES station, a coordinated optimization approach for frequency regulation and peak shaving is suggested. The strategy considers the income from these two ancillary services in addition to the degradation of SES over its lifetime. It turns out that this approach is more cost-effective than relying merely on the SES station for either of the two.