Enhancing the value of large-scale energy storage systems in congested distribution grids using service stacking

Energy storage systems (ESS) are suitable for many grid applications, where some have large seasonal variations. By combining additional services, i.e., service stacking, companies with energy storage assets may generate additional revenue as well as provide services to the power system. This paper aims to highlight and estimate the technical and economic potential of stacking services using energy storage systems in congested a distribution grid. A scheduling optimization tool was implemented for a large-scale battery ESS providing a selection of deemed relevant services over two years. The results show that there is a great potential to enhance the value of the ESS significantly depending on the service portfolio layout. A capacity life loss model was also implemented to analyse the degradation of the ESS, and the cycle aging was estimated for the chosen portfolios. The results showed that a fully stacked portfolio does not necessarily result in increased cycle aging, but that it depended on the services in the portfolio. The cycle aging was affected the most by stacking flexibility with energy arbitrage, while frequency regulation services only resulted in a few additional cycles during each year of operation.