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

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  • 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
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    References listed on IDEAS

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    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).
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    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.

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