Bolun Xu

Modeling of Lithium-Ion Battery Degradation for Cell Life Assessment

Rechargeable lithium-ion batteries are promising candidates for building grid-level storage systems because of their high energy and power density, low discharge rate, and decreasing cost. A vital aspect in energy storage planning and operations is to accurately model the aging cost of battery cells, especially in irregular cycling operations. This paper proposes a semi-empirical lithium-ion battery degradation model that assesses battery cell life loss from operating profiles. We formulate the model by combining fundamental theories of battery degradation and our observations in battery aging test results. The model is adaptable to different types of lithium-ion batteries, and methods for tuning the model coefficients based on manufacturer’s data are presented. A cycle-counting method is incorporated to identify stress cycles from irregular operations, allowing the degradation model to be applied to any battery energy storage (BES) applications. The usefulness of this model is demonstrated through an assessment of the degradation that a BES would incur by providing frequency control in the PJM regulation market.

BESS Control Strategies for Participating in Grid Frequency Regulation

Abstract Battery Energy Storage Systems (BESS) are very effective means of supporting system frequency by providing fast response to power imbalances in the grid. However, BESS are costly, and careful system design and operation strategies are needed in order to generate revenue for the system owner. We propose control strategies which will help to maintain BESSs State of Charge (SoC) in the optimal range and slow down battery aging significantly. A validation of these strategies using data from ENTSO-E (for the German regulation market) in Continental Europe and the PJM interconnection in the USA is presented in the results section.

Stochastic Multistage Coplanning of Transmission Expansion and Energy Storage

Transmission expansion and energy storage increase the flexibility of power systems and, hence, their ability to deal with uncertainty. Transmission lines have a longer lifetime and a more predictable performance than energy storage, but they require a very large initial investment. While battery energy storage systems (BESS) can be built faster and their capacity can be increased gradually, their useful life is shorter because their energy capacity degrades with time and each charge and discharge cycle. Additional factors, such as the expected profiles of load and renewable generation significantly affect planning decisions. This paper proposes a stochastic, multistage, coplanning model of transmission expansion, and BESS that considers both the delays in transmission expansion and the degradation in storage capacity under different renewable generation and load increase scenarios. The proposed model is tested using a modified version of the IEEE-RTS. Sensitivity analyses are performed to assess how factors such as the planning method, the storage chemistry characteristics, the current transmission capacity, and the uncertainty on future renewable generation and load profiles affect the investment decisions.

Optimal Energy Storage Siting and Sizing: A WECC Case Study

The large-scale integration of grid-scale energy storage and the increasing penetration of renewable resources motivate the development of techniques for determining the optimal ratings and locations of storage devices. This paper proposes a method for identifying the sites where energy storage systems should be located to perform spatio-temporal energy arbitrage most effectively and the optimal size of these systems. This method takes a centralized perspective where the objective is to minimize the sum of the expected operating cost and the investment cost of energy storage. It has been tested on a realistic 240-bus 448-line model of the Western Electricity Coordinating Council (WECC) interconnection. The influence on the results of the following parameters is analyzed: Maximum number of storage locations, maximum size of storage systems, capital cost of deploying storage, value assigned to spillage of renewable energy, marginal cost of conventional generation, and renewable generation capacity. These numerical results are used to characterize the benefits that energy storage can provide in prospective large-scale power systems with renewable generation.

Leveraging energy storage to optimize data center electricity cost in emerging power markets

Energy storage in data centers has mainly been used as devices to backup generators during power outages. Recently there has been a growing interest in using energy storage devices to actively shape power consumption in data centers to reduce their skyrocketing electricity bills. In this paper, we consider using energy storage in data centers for two applications in a joint fashion: reducing peak demand charges and enabling data centers to participate in regulation markets. We develop an optimization framework that captures the cost of electricity degradation of energy storage devices, as well as the benefit from regulation markets. Under this framework, using real data Microsoft data center traces and PJM regulation signals, we show the electricity bill of a data center can be reduced by up to 20%. Furthermore, we demonstrate that the saving from joint optimization can be even larger than the sum of individually optimizing each component. We quantify the particular aspects of data center load profiles that lead to this superlinear gain. Compared to prior works that consider using energy storage devices for each single application alone, our results suggest that energy storage in data centers can have much larger impacts than previously thought possible.

Using Battery Storage for Peak Shaving and Frequency Regulation: Joint Optimization for Superlinear Gains

We consider using a battery storage system simultaneously for peak shaving and frequency regulation through a joint optimization framework, which captures battery degradation, operational constraints, and uncertainties in customer load and regulation signals. Under this framework, using real data we show the electricity bill of users can be reduced by up to 12%. Furthermore, we demonstrate that the saving from joint optimization is often larger than the sum of the optimal savings when the battery is used for the two individual applications. A simple threshold real-time algorithm is proposed and achieves this superlinear gain. Compared to prior works that focused on using battery storage systems for single applications, our results suggest that batteries can achieve much larger economic benefits than previously thought if they jointly provide multiple services.

Look-Ahead Bidding Strategy for Energy Storage

As the cost of battery energy storage continues to decline, we are likely to see the emergence of merchant energy storage operators. These entities will seek to maximize their operating profits through strategic bidding in the day-ahead electricity market. One important parameter in any storage bidding strategy is the state-of-charge at the end of the trading day. Because this final state-of-charge is the initial state-of-charge for the next trading day, it has a strong impact on the profitability of storage for this next day. This paper proposes a look-ahead technique to optimize a merchant energy storage operators bidding strategy considering both the day-ahead and the following day. Taking into account the discounted profit opportunities that could be achieved during the following day allows us to optimize the state-of-charge at the end of the first day. We formulate this problem as a bilevel optimization. The lower-level problem clears a ramp-constrained multiperiod market and passes the results to the upper-level problem that optimizes the storage bids. Linearization techniques and Karush–Kuhn–Tucker conditions are used to transform the original problem into an equivalent single-level mixed-integer linear program. Numerical results obtained with the IEEE Reliability Test System demonstrate the benefits of the proposed look-ahead bidding strategy and the importance of considering ramping and network constraints.

A comparison of policies on the participation of storage in U.S. frequency regulation markets

Because energy storage systems have better ramping characteristics than traditional generators, their participation in frequency regulation should facilitate the balancing of load and generation. However, they cannot sustain their output indefinitely. System operators have therefore implemented new frequency regulation policies to take advantage of the fast ramps that energy storage systems can deliver while alleviating the problems associated with their limited energy capacity. This paper contrasts several U.S. policies that directly affect the participation of energy storage systems in frequency regulation and compares the revenues that the owners of such systems might achieve under each policy.

Factoring the Cycle Aging Cost of Batteries Participating in Electricity Markets

When participating in electricity markets, owners of battery energy storage systems must bid in such a way that their revenues will at least cover their true cost of operation. Since cycle aging of battery cells represents a substantial part of this operating cost, the cost of battery degradation must be factored in these bids. However, existing models of battery degradation either do not fit market clearing software or do not reflect the actual battery aging mechanism. In this paper we model battery cycle aging using a piecewise linear cost function, an approach that provides a close approximation of the cycle aging mechanism of electrochemical batteries and can be incorporated easily into existing market dispatch programs. By defining the marginal aging cost of each battery cycle, we can assess the actual operating profitability of batteries. A case study demonstrates the effectiveness of the proposed model in maximizing the operating profit of a battery energy storage system taking part in the ISO New England energy and reserve markets.

Scalable Planning for Energy Storage in Energy and Reserve Markets

Energy storage can facilitate the integration of renewable energy resources by providing arbitrage and ancillary services. Jointly optimizing energy and ancillary services in a centralized electricity market reduces the systems operating cost and enhances the profitability of energy storage systems. However, achieving these objectives requires that storage be located and sized properly. We use a bilevel formulation to optimize the location and size of energy storage systems, which perform energy arbitrage and provide regulation services. Our model also ensures the profitability of investments in energy storage by enforcing a rate of return constraint. Computational tractability is achieved through the implementation of a primal decomposition and a subgradient-based cutting-plane method. We test the proposed approach on a 240-bus model of the Western Electricity Coordinating Council system and analyze the effects of different storage technologies, rate of return requirements, and regulation market policies on energy storage participation on the optimal storage investment decisions. We also demonstrate that the proposed approach outperforms exact methods in terms of solution quality and computational performance.