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Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations

Author

Listed:
  • Andrea Scrocca

    (Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy)

  • Roberto Pisani

    (Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy)

  • Diego Andreotti

    (Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy)

  • Giuliano Rancilio

    (Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy)

  • Maurizio Delfanti

    (Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy)

  • Filippo Bovera

    (Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy)

Abstract

Recent European regulations promote distributed energy resources as alternatives to centralized generation. This study compares utility-scale and distributed photovoltaic (PV) systems coupled with Battery Energy-Storage Systems (BESSs) in the Italian electricity market, analyzing different battery sizes. A multistage stochastic mixed-integer linear programming model, using Monte Carlo PV production scenarios, optimizes day-ahead and intra-day market offers while incorporating PV forecast updates. In real time, battery flexibility reduces imbalances. Here we show that, to ensure dispatchability—defined as keeping annual imbalances below 5% of PV output—a 1 MW PV system requires 220 kWh of storage for utility-scale and 50 kWh for distributed systems, increasing the levelized cost of electricity by +13.1% and +1.94%, respectively. Net present value is negative for BESSs performing imbalance netting only. Therefore, a multiple service strategy, including imbalance netting and energy arbitrage, is introduced. Performing arbitrage while keeping dispatchability reaches an economic optimum with a 1.7 MWh BESS for utility-scale systems and 1.1 MWh BESS for distributed systems. These results show lower PV firming costs than previous studies, and highlight that under a multiple-service strategy, better economic outcomes are obtained with larger storage capacities.

Suggested Citation

  • Andrea Scrocca & Roberto Pisani & Diego Andreotti & Giuliano Rancilio & Maurizio Delfanti & Filippo Bovera, 2025. "Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations," Energies, MDPI, vol. 18(14), pages 1-32, July.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:14:p:3791-:d:1703619
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    References listed on IDEAS

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