Economic Reinforcement of Low Voltage Power Grids with Battery Energy Storage Systems: Combined Grid Service and Spot Market Trading

This work investigates the economic feasibility of using a battery energy storage system (BESS) for grid reinforcement in low-voltage (LV) power grids. We study the combined benefit of BESS when, on the one hand, it provides voltage stabilization as a grid service and, on the other hand, participates in the spot market for energy trading. We develop a detailed residential LV network model that accounts for the growing adoption of photovoltaic systems and heat pumps. Economic viability is assessed by calculating the net present value of the BESS over its lifetime. A section of the power grid of Jena, Germany, is used as a case study. The results demonstrate that integrating voltage stabilization and spot market trading enhances the cost-effectiveness of BESS for grid reinforcement with a financial improvement of roughly 57% compared with a single use-case solution.