In Australia’s National Electricity Market (NEM), community-scale battery energy storage systems (BESS) operate under five-minute price volatility and frequent negative pricing. However, unmeasured internal states and degradation processes constrain the effectiveness of rule-based and simplified optimisation methods for real-time arbitrage. To address these challenges, this study proposes a data-driven digital-twin framework for real-time management of a 1 MW/4 MWh grid-connected community BESS. The framework integrates a control-oriented single-particle model (SPM), an Unscented Kalman Filter (UKF)-based estimation layer for state-of-charge (SOC), state-of-health (SOH) and internal-state estimation and a degradation-aware nonlinear model predictive control (NMPC) strategy. Within this architecture, the SPM provides an interpretable electrochemical representation, the estimation layer reconstructs internal states from measurable signals, and the NMPC performs five-minute rolling arbitrage subject to voltage, power, and SOC constraints while accounting for ageing-related costs and ramp penalties. Simulation case studies based on high-volatility daily price profiles from four NEM regions indicate that the proposed framework can coordinate arbitrage-oriented dispatch, constraint-aware operation, and degradation-related cost consideration under the tested conditions. These results suggest the potential of the SPM–UKF–NMPC digital-twin architecture for supporting real-time community-scale BESS management, while further validation under forecast uncertainty and hardware or field conditions remains necessary.
Liu et al. (Wed,) studied this question.