Optimal Scheduling of Limited Energy Reservoir Technologies in Nordic Ancillary Services and Energy Markets

The Nordic Transmission System Operators procure an extensive number of primary and secondary reserves to maintain power system stability. The reserves differ in market prices and in technical requirements like activation speed and energy activation. Committing large scale assets based on limited energy storage reservoirs (LER) such as battery energy storage systems (BESS) to deliver reserves generates an availability payment, but also blocks both power and energy capacity of the asset from other value streams like energy arbitrage. An energy management system that optimally schedule commitments of energy and power capacity of LER assets to energy arbitrage and reserve provision. The methodology considers all regulatory constraints and specific technical requirements for delivering reserves from LER assets. Based on the Nordic regulatory frame work with four years of market data, the methodology demonstrates that it is possible to achieve an operating result that improves yearly results with 9%-105% compared to the best fixed market combination.