IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i6p2370-d1356128.html
   My bibliography  Save this article

Revenue Analysis of Stationary and Transportable Battery Storage for Power Systems: A Market Participant Perspective

Author

Listed:
  • Zhongyang Zhao

    (Department of Electrical and Computer Engineering, Wayne State University, Detroit, MI 48202, USA)

  • Caisheng Wang

    (Department of Electrical and Computer Engineering, Wayne State University, Detroit, MI 48202, USA)

  • Masoud H. Nazari

    (Department of Electrical and Computer Engineering, Wayne State University, Detroit, MI 48202, USA)

Abstract

The power system faces a growing need for increased transmission capacity and reliability with the rising integration of renewable energy resources. To tackle this challenge, Battery Energy Storage Systems (BESSs) prove effective in enhancing grid capacity and relieving transmission congestion. This paper focuses on the PJM market, conducting a thorough revenue analysis to identify and characterize highly profitable nodes for BESS market participants. A comparison between stationary and transportable BESSs reveals that the transportable BESSs can generate higher potential revenue in energy and regulation markets. Based on these findings, we propose an optimal placement algorithm to support market participants in selecting strategic sites for BESS installation, validated with real PJM market data. This paper provides valuable insights for navigating market-based power system participants and promoting the effective integration of BESSs.

Suggested Citation

  • Zhongyang Zhao & Caisheng Wang & Masoud H. Nazari, 2024. "Revenue Analysis of Stationary and Transportable Battery Storage for Power Systems: A Market Participant Perspective," Sustainability, MDPI, vol. 16(6), pages 1-16, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2370-:d:1356128
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/6/2370/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/6/2370/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen Frank & Steffen Rebennack, 2016. "An introduction to optimal power flow: Theory, formulation, and examples," IISE Transactions, Taylor & Francis Journals, vol. 48(12), pages 1172-1197, December.
    2. Ramteen Sioshansi & Paul Denholm & Thomas Jenkin, 2012. "Market and Policy Barriers to Deployment of Energy Storage," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pedro Ferreira Torres & Alex R. A. Manito & Gilberto Figueiredo & Marcelo P. Almeida & José César de Souza Almeida Neto & Renato L. Cavalcante & Caio Cesar Vieira de Freitas Almeida da Silva & Roberto, 2025. "Energy Storage as a Transmission Asset—Assessing the Multiple Uses of a Utility-Scale Battery Energy Storage System in Brazil," Energies, MDPI, vol. 18(4), pages 1-24, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lukas Kriechbaum & Philipp Gradl & Romeo Reichenhauser & Thomas Kienberger, 2020. "Modelling Grid Constraints in a Multi-Energy Municipal Energy System Using Cumulative Exergy Consumption Minimisation," Energies, MDPI, vol. 13(15), pages 1-23, July.
    2. Marcel Sarstedt & Leonard Kluß & Johannes Gerster & Tobias Meldau & Lutz Hofmann, 2021. "Survey and Comparison of Optimization-Based Aggregation Methods for the Determination of the Flexibility Potentials at Vertical System Interconnections," Energies, MDPI, vol. 14(3), pages 1-27, January.
    3. Abdullah Khan & Hashim Hizam & Noor Izzri bin Abdul Wahab & Mohammad Lutfi Othman, 2020. "Optimal power flow using hybrid firefly and particle swarm optimization algorithm," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-21, August.
    4. Diego Larrahondo & Ricardo Moreno & Harold R. Chamorro & Francisco Gonzalez-Longatt, 2021. "Comparative Performance of Multi-Period ACOPF and Multi-Period DCOPF under High Integration of Wind Power," Energies, MDPI, vol. 14(15), pages 1-15, July.
    5. Kost, Christoph & Flath, Christoph M. & Möst, Dominik, 2013. "Concentrating solar power plant investment and operation decisions under different price and support mechanisms," Energy Policy, Elsevier, vol. 61(C), pages 238-248.
    6. Ottenburger, Sadeeb Simon & Çakmak, Hüseyin Kemal & Jakob, Wilfried & Blattmann, Andreas & Trybushnyi, Dmytro & Raskob, Wolfgang & Kühnapfel, Uwe & Hagenmeyer, Veit, 2020. "A novel optimization method for urban resilient and fair power distribution preventing critical network states," International Journal of Critical Infrastructure Protection, Elsevier, vol. 29(C).
    7. Huijia Yang & Weiguang Fan & Guangyu Qin & Zhenyu Zhao, 2021. "A Fuzzy-ANP Approach for Comprehensive Benefit Evaluation of Grid-Side Commercial Storage Project," Energies, MDPI, vol. 14(4), pages 1-17, February.
    8. Katrin Schmitz & Bjarne Steffen & Christoph Weber, 2013. "Incentive or impediment? The impact of capacity mechanisms on storage plants," RSCAS Working Papers 2013/46, European University Institute.
    9. Boffino, Luigi & Conejo, Antonio J. & Sioshansi, Ramteen & Oggioni, Giorgia, 2019. "A two-stage stochastic optimization planning framework to decarbonize deeply electric power systems," Energy Economics, Elsevier, vol. 84(C).
    10. Gustavo Adolfo Gómez-Ramírez & Carlos Meza & Gonzalo Mora-Jiménez & José Rodrigo Rojas Morales & Luis García-Santander, 2023. "The Central American Power System: Achievements, Challenges, and Opportunities for a Green Transition," Energies, MDPI, vol. 16(11), pages 1-20, May.
    11. Retna Kumar, Aravind & Shrimali, Gireesh, 2021. "Role of policy in the development of business models for battery storage deployment: Hawaii case study," Energy Policy, Elsevier, vol. 159(C).
    12. Martin, Nigel & Rice, John, 2021. "Power outages, climate events and renewable energy: Reviewing energy storage policy and regulatory options for Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    13. Resch, Matthias & Bühler, Jochen & Klausen, Mira & Sumper, Andreas, 2017. "Impact of operation strategies of large scale battery systems on distribution grid planning in Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1042-1063.
    14. Martin Mata & Petr HlavÃ¡Ä ek, 2024. "Lithium Mining as a Tool for Economic and Energy Transformation of Region: Reflections on Policies, Processes and Communities," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 46-54, November.
    15. Schill, Wolf-Peter, 2014. "Residual Load, Renewable Surplus Generation and Storage Requirements in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 73, pages 65-79.
    16. Timo Lohmann & Michael R. Bussieck & Lutz Westermann & Steffen Rebennack, 2021. "High-Performance Prototyping of Decomposition Methods in GAMS," INFORMS Journal on Computing, INFORMS, vol. 33(1), pages 34-50, January.
    17. Gurpreet Kaur & Mohit Kumar & J. S. Dhillon, 2025. "Dynamic Multi-area Generation Scheduling with Renewable Energy Sources Exploiting Optimistic Sine–Cosine Algorithm," SN Operations Research Forum, Springer, vol. 6(2), pages 1-53, June.
    18. Sahin, Berk & Hasenbein, John & Kutanoglu, Erhan, 2025. "Value of considering extreme weather resilience in grid capacity expansion planning," Reliability Engineering and System Safety, Elsevier, vol. 259(C).
    19. Ferrario, E. & Poulos, A. & Castro, S. & de la Llera, J.C. & Lorca, A., 2022. "Predictive capacity of topological measures in evaluating seismic risk and resilience of electric power networks," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    20. López-Ramos, Francisco & Nasini, Stefano & Sayed, Mohamed H., 2020. "An integrated planning model in centralized power systems," European Journal of Operational Research, Elsevier, vol. 287(1), pages 361-377.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2370-:d:1356128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.