On frequency control provision with a microgrid containing battery energy systems and renewable energy sources

Abstract

The main benefit of operating a distribution grid as a microgrid (MG) is the additional security of supply due to its local electricity generation and islanding possibility. In this work, we investigate the technical ability and the economic viability of a MG with renewable generation to provide also frequency control (FC) to upper voltage levels as an additional source of revenue in grid-connected mode. To compensate for the variable generation of renewable energy sources and facilitate opportunities to bid in FC markets, we include a battery energy storage system (BESS). In order to determine the potential of the MG in the different FC markets, the problem is formulated as a multi-period optimal power flow with a rolling horizon of 24 hours. In order to evaluate the business case for such a system, we carry out an ex-post analysis in which we include the investment cost of a BESS and determine the life cycle benefits using the revenue streams calculated by the proposed optimization scheme. I.