A Cost Benefit Study of using Energy Storage to Provide Regulation Services

摘要

This paper presents a cost benefit study of using energy storage systems (ESS) to provide regulation services. The impact of lifetime depreciation characteristics and regulation signal design on ESS service lifetime depreciation, service quality and service costs are quantified. Two ESS operation mechanisms are considered: 1-directional and 2-directional services. When providing 1-directional service, the ESS only responds to regulation-up or regulation-down service during the committed period. When providing 2-directional service, the ESS can respond to both regulation-up and regulation-down signals. Regulation and price data published by New York Independent System Operator and PJM are used to conduct the study.