Charging Incentive Design with Minimum Price Guarantee for Battery Energy Storage Systems to Mitigate Grid Congestion

The large-scale integration of renewable energy sources (RESs) has raised concerns regarding grid congestion in Japan. Battery energy storage systems (BESSs) can mitigate congestion by adjusting charging schedules; however, BESS owners basically prioritize market arbitrage, which may not be aligned with congestion mitigation. This paper proposes a charging incentive design to guide arbitrage-oriented BESS charging toward time periods that are effective for grid congestion mitigation. The system operator predicts congested hours and ensures that BESS owners can purchase electricity at the lowest daily market price. This design intends to shift the BESS charging time towards congestion periods. Because market prices tend to decline during congestion periods, the proposed method reduces the operator’s financial burden while encouraging congestion-mitigating charging behavior. Numerical simulations using a simplified Japanese east-side power system model demonstrate that the proposed method reduced the congestion mitigation costs by 3.86% and curtailed the RES output by 3.89%, compared to using no incentive method (current operation in Japan). Furthermore, additional payments to BESS owners accounted for only around 7% of the resulting cost savings, indicating that the proposed method achieved lower overall system operating costs.

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Publication Details

Journal
Energies
Published
2025-05-29
DOI
https://doi.org/10.3390/en18112840
Primary Topic
Microgrid Control and Optimization
Type
article
Field-Weighted Citation Impact
0.00

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article

Charging Incentive Design with Minimum Price Guarantee for Battery Energy Storage Systems to Mitigate Grid Congestion

Yasuhiro Hayashi, Yu Fujimoto, Yujiro Tanno, Akihisa Kaneko et al.
Energies
Microgrid Control and Optimization
article

Charging Incentive Design with Minimum Price Guarantee for Battery Energy Storage Systems to Mitigate Grid Congestion

Yasuhiro Hayashi, Yu Fujimoto, Yujiro Tanno, Akihisa Kaneko, Hideo Koseki, Yuji Hanai
article en

Abstract

The large-scale integration of renewable energy sources (RESs) has raised concerns regarding grid congestion in Japan. Battery energy storage systems (BESSs) can mitigate congestion by adjusting charging schedules; however, BESS owners basically prioritize market arbitrage, which may not be aligned with congestion mitigation. This paper proposes a charging incentive design to guide arbitrage-oriented BESS charging toward time periods that are effective for grid congestion mitigation. The system operator predicts congested hours and ensures that BESS owners can purchase electricity at the lowest daily market price. This design intends to shift the BESS charging time towards congestion periods. Because market prices tend to decline during congestion periods, the proposed method reduces the operator’s financial burden while encouraging congestion-mitigating charging behavior. Numerical simulations using a simplified Japanese east-side power system model demonstrate that the proposed method reduced the congestion mitigation costs by 3.86% and curtailed the RES output by 3.89%, compared to using no incentive method (current operation in Japan). Furthermore, additional payments to BESS owners accounted for only around 7% of the resulting cost savings, indicating that the proposed method achieved lower overall system operating costs.

EnergiesVol. 18(11)
Central Research Institute of Electric Power Industry (JP), Waseda University (JP)
Japan Society for the Promotion of Science
Openalex Percentile: Top 87%
Microgrid Control and Optimization
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Charging Incentive Design with Minimum Price Guarantee for Battery Energy Storage Systems to Mitigate Grid Congestion — Yasuhiro Hayashi, Yu Fujimoto, et al. · Energies (2025) | TGRS Research Map | TGRS