A Two-Stage Optimization for Multi-Use Operation of BESS with Peak Shaving and FCR Applications

When serving a single application, battery energy storage systems (BESS) are subject to extended idle periods and the flexibility potential remains mostly unused, thus lowering the profitability. This work investigates multi-use operation strategies for BESS, focusing on the applications peak shaving (PS) and the participation in ancillary service markets, here frequency containment reserve (FCR). To conduct this investigation, an optimization model is developed to simulate the behavior of an energy management system (EMS) of a BESS. A scenario analysis was conducted to assess the extent to which multi-use operation can yield additional revenues, considering various load profiles with appropriately sized batteries. The results revealed that this approach was economically advantageous in two scenarios. However, the choice of these applications depends on the residual load profile and clear generation peaks.