Economic Viability of Battery Energy Storage for the Provision of Frequency Regulation Service
Georghiou, George E.
SourceJournal of Power Technologies
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Battery Energy Storage Systems (BESS) can provide a number of services to the power grid, with various financial potentials.This paper examines the economic viability of BESS providing primary frequency regulation (PFR) services in Europeanmarkets. The current status of frequency regulation markets of mainland UK (Great Britain) and Central Europe was investigatedand a techno-econometric model was developed to examine the economic viability and profitability of each marketcase. The results show a positive Net Present Value (NPV) for all the examined markets and a high internal rate of return(IRR). The impact of the most influential parameters such as service price and initial capital cost has been examined andanalysed. This analysis seeks to inform interested parties about the viability of BESS services and to provide guidelines forfuture development.