Using novel technologies to provide flexibility to distribution systems by exploiting a market portfolio approach

Technologies utilising forms of air storage or refrigeration can be used to effectively provide a flexibility option somewhat similar to “battery storage” to the sites to which they are connected. Conventional approaches using these thermal storage techniques focus on “time-shifting” power use from high prices regimes to low ones. Participation and service provision in flexibility/ancillary markets could result in additional revenue streams to the users of such technology. Not only does this produce additional revenues to the businesses themselves, but it also assists the Distribution System Operators. Using a liquid air storage case study based on a large UK industrial consumer (cement works), the paper considers how such a technology can benefit from “playing” in the UK frequency, balancing, wholesale and Piclo flexibility markets. Using a simulation model we show that significant value can be obtained, by using a market portfolio approach in conjunction with the liquid air storage. The market portfolio approach can increase revenues by some 10-200% over just using the Balancing Mechanism alone. Using ancillary markets over the conventional import time shifting approach could increase revenues by at least 8 times and sometimes significantly more.