Provision of Frequency Regulation Service and Peak Demand Reduction by Distributed Battery Storage

This paper investigates the potential for provision of frequency regulation services in combination with other financially rewarding services, such as peak demand reduction and Photovoltaic (PV) export support by distributed Battery Energy Storage Systems (BESS). Initially, the financial potential from the individual services were estimated and the possible combination of services were evaluated. Historical data for consumption and PV generation were used from residential sites from various locations in Cyprus, as well as frequency measurements from the local electricity grid. Modelling and simulation of those services was performed, based on the historical data and subsequently the operational and financial performance of the services was examined. Different combinations of services were tested, and the operational and technical conflicts were indicated. The most valuable and viable combinations are presented and analyzed further. A high-level control strategy has been developed aiming at the maximization of the economic value streams while avoiding the operational and technical conflicts.