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Establishing the Stacked Value of Battery Energy Storage in Electric Power Systems

The true value of a battery energy storage system (BESS) can only be established when multiple technically and operationally compatible services rendered by the BESS are ‘stacked’ and valued. This paper makes an attempt towards estimating the stacked value of a BESS providing multiple services such as peak shaving, frequency regulation, and reserve support etc. in an Arizona-based test system. This has been achieved by developing a mixed-integer programming (MIP) based optimization model that captures the operation of the BESS in the test system. The obtained results suggest that BESS with stacked benefits yield significantly more value than BESS delivering a single primary service in isolation.