Research Article
Design of Compensation Mechanism for Energy Storage Participating in Auxiliary Services and Analysis of Its Investment Economics
@INPROCEEDINGS{10.4108/eai.2-12-2022.2328723, author={Dong Dou and Yanyu Wang and Yibo Su and Wensheng Yang and Hongbo Li and Yunyi Wu and Yan Li}, title={Design of Compensation Mechanism for Energy Storage Participating in Auxiliary Services and Analysis of Its Investment Economics}, proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China}, publisher={EAI}, proceedings_a={BDEIM}, year={2023}, month={6}, keywords={energy storage; auxiliary services; peak regulation; frequency regulation; compensation mechanism; analysis of investment economy}, doi={10.4108/eai.2-12-2022.2328723} }- Dong Dou
Yanyu Wang
Yibo Su
Wensheng Yang
Hongbo Li
Yunyi Wu
Yan Li
Year: 2023
Design of Compensation Mechanism for Energy Storage Participating in Auxiliary Services and Analysis of Its Investment Economics
BDEIM
EAI
DOI: 10.4108/eai.2-12-2022.2328723
Abstract
Energy storage can effectively solve the problems of insufficient power grid regulation capacity and increasing difficulty in frequency stabilization caused by a high proportion of renewable energy. However, China's current market mechanism for energy storage to participate in auxiliary services is not perfect, resulting in the lack of reasonable cost returns for energy storage that creates numerous external value, which seriously affects the commercial development of energy storage. To this end, this pa-per proposes a compensation mechanism for energy storage to participate in peak regulation and frequency regulation services on the premise of China's electricity market environment. Firstly, the compensation mechanism before and after energy storage participating in auxiliary services is analyzed, and the additional value created by energy storage participating in auxiliary services and the compensation principle are clarified. Secondly, a stepped peak shaving compensation mechanism considering cycle depth and a two-part frequency modulation compensation mechanism considering frequency modulation opportunity cost are proposed. Based on this, according to the different operation modes of energy storage, the revenue and cost models in the operation stage are constructed. Finally, the investment economics of energy storage participating in different auxiliary service scenarios are compared and analyzed through simulation experiments.