Economic Evaluation of Frequency Reserve Provision using Battery Energy Storage

The integration of battery energy storage systems (BESSs) into electric power grids is increasing, and frequency reserve provision is one of the most economic services suggested for these units. This paper investigates the economic benefit of providing Frequency-Controlled Normal operation Reserve (FCR-N) using a BESS under Eastern Denmark's (DK2) regulations. The main influencing factors, including the legal framework, energy tariffs and taxation, and battery degradation, are investigated, and the one-year operation of a 1MW/1MWh BESS providing FCR-N is simulated using second-based frequency data. Simulations show that provision of FCR-N using BESS is economic in certain future scenarios.