Modeling study reveals multi-service revenue dynamics in battery energy storage, indicating that demand response and midday charging maximize daily earnings.
Independent battery energy storage systems (BESSs) can contribute to time-of-use arbitrage, ancillary services, capacity value compensation, capacity leasing, and demand response. Their multi-service value, however, depends on how power, energy, state-of-charge (SOC), and service windows are occupied or reserved across services. This paper develops a mechanism-oriented framework linking candidate-service identification, capacity-occupation modelling, revenue-activation assessment, and interpretation-boundary clarification. A 100 MW/200 MWh independent BESS is evaluated using four comparative typical-day portfolios under common technical and economic settings. Arbitrage provides CNY 0.280 million/day in all cases. Cases 2 and 3 reach CNY 0.330 million/day, with the declared midday charging-service capacity reaching 100 MW. In Case 4, a specified 100 MWh demand-response event is included; arbitrage, the midday charging service, capacity value compensation, and demand response generate positive revenue, while frequency regulation and capacity leasing remain at 0 MW. Net daily revenue reaches CNY 0.375 million/day. The results distinguish endogenous capacity-allocation outcomes from exogenous scenario commitments: regulation and leasing are screened by opportunity-cost competition; midday charging is subject to scenario-defined inclusion and timing but an endogenous declared capacity, whereas demand response is specified exogenously. The framework therefore supports transparent interpretation of positive and zero-capacity outcomes without extending station-level evidence to unsupported grid-level benefits.
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Li et al. (2026) studied this question.
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