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Provision of frequency containment reserve from residential battery storage systems: A German case study

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  • Fett, Daniel
  • Fraunholz, Christoph
  • Lange, Malin

Abstract

In order to increase self-consumption (SC) more than half of the residential photovoltaic (PV) systems in Germany are installed with battery storage systems (BSS). The utilization of these BSSs however varies throughout the year and therefore they could be used for other services to further increase their profitability. Recent changes in regulation for frequency containment reserve (FCR) facilitate multi-use concepts and first aggregators are already prequalified for the German market. Against this background, we analyze the potential for the joint provision of FCR and SC increase from residential BSSs with a linear optimization model applied to 162 German households. Different scenarios including fixed shares of the BSS reserved for FCR, priorization of SC or a joint optimization of SC and FCR are examined. We find that fixed shares of FCR only lead to minimal additional financial benefits. Both, the joint optimization of FCR and SC and prioritizing SC lead to higher additional gains, while the loss in SC is low in both scenarios. Moreover, even when prioritizing SC still high shares of the BSS can be used for FCR. Only a significant increase in FCR prices leads to SC being sacrificed for higher FCR shares.

Suggested Citation

  • Fett, Daniel & Fraunholz, Christoph & Lange, Malin, 2023. "Provision of frequency containment reserve from residential battery storage systems: A German case study," Working Paper Series in Production and Energy 71, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    • Handle: RePEc:zbw:kitiip:71
    DOI: 10.5445/IR/1000159219
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    References listed on IDEAS

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    1. Angenendt, Georg & Zurmühlen, Sebastian & Figgener, Jan & Kairies, Kai-Philipp & Sauer, Dirk Uwe, 2020. "Providing frequency control reserve with photovoltaic battery energy storage systems and power-to-heat coupling," Energy, Elsevier, vol. 194(C).
    2. Daniel Fett & Dogan Keles & Thomas Kaschub & Wolf Fichtner, 2019. "Impacts of self-generation and self-consumption on German household electricity prices," Journal of Business Economics, Springer, vol. 89(7), pages 867-891, September.
    3. Fett, Daniel & Fraunholz, Christoph & Keles, Dogan, 2021. "Diffusion and system impact of residential battery storage under different regulatory settings," Energy Policy, Elsevier, vol. 158(C).
    4. Fett, Daniel & Fraunholz, Christoph & Keles, Dogan, 2021. "Diffusion and system impact of residential battery storage under different regulatory settings," Working Paper Series in Production and Energy 55, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    5. Braeuer, Fritz & Rominger, Julian & McKenna, Russell & Fichtner, Wolf, 2019. "Battery storage systems: An economic model-based analysis of parallel revenue streams and general implications for industry," Applied Energy, Elsevier, vol. 239(C), pages 1424-1440.
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    More about this item

    Keywords

    Frequency containment reserve; Residential battery storage system; Self-consumption; Multi-use; Pooling;
    All these keywords.

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