Framework for Depth-of-Discharge Optimization and Operation of Battery Energy Storage for Maximum Return in Electricity Markets

Energy storage plays a vital role in transmitting today’s power grid from being non-sustainable and centralized to becoming sustainable and decentralized. Electrochemical batteries are among the most matured energy storage technologies that can be used for grid storage applications. However, these devices can be expensive and may reach their operational life prematurely if not operated properly. This paper presents a techno-economic assessment for electrochemical batteries in electricity markets. Specifically, the paper presents a framework for operating and optimizing the depth-of-discharge (DOD) of battery energy storage (BES) units in electricity markets to maximize their economic feasibility. Various DOD scenarios are considered and evaluated. Beside the battery cycle-life, the calendar-life is also considered in the presented framework. Derivation of the proposed framework followed by results and analysis are presented.