Techno-Economic Assessment of Community Battery Participation in Energy and FCAS Markets with Customer Cost Reduction

This paper presents a comprehensive techno-economic assessment of a community battery energy storage system (BESS) participating concurrently in energy arbitrage and frequency control ancillary services (FCAS) markets, while also providing customer savings through coordinated demand management. The proposed framework employs a mixed-integer linear programming (MILP) model to co-optimize the charging, discharging, and reserve scheduling of the battery under dynamic market conditions. The model explicitly incorporates key operational and economic factors such as round-trip efficiency, degradation cost, market-participation constraints, and revenue from multiple value streams. By formulating the optimization problem within this MILP structure, both the operational feasibility and the economic profitability of the system are evaluated over annual market cycles. Simulation results demonstrate that integrating FCAS participation with conventional energy arbitrage substantially enhances total revenue potential and improves asset utilization, compared with single-service operation. Furthermore, the coordinated management of community demand contributes to additional cost savings and supports local grid reliability. The findings highlight the critical role of co-optimized control and multi-market participation strategies in improving the financial viability and grid-support capabilities of community-scale BESS deployments.