A Techno-Economic Evaluation of Battery Energy Storage Systems co-located with Wind in the Irish Integrated Electricity Market

Abstract

As Ireland moves towards decarbonization of electricity, Wind Power Plant Producers (WPP) face novel challenges and prospects. As of October 2018, WPP must partake in the Balancing Marketing where penalties will apply for active power variations. Power Plants in Ireland now also have new opportunities for receiving additional payments from system services. Co-location of Battery Energy Storage Systems (BESS) with a wind farm can be utilized to absorb additional power where curtailment may have been the only previous option, reduce the risk associated with balancing and offer grid stability as the levels of renewables increase. Using a large-scale Irish wind farm as a case study, the value of co-location of BESS under the existing Irish market regulations was examined. In this study, two separate revenue streams and modes of operation are investigated for one year. The use of BESS for balancing purposes and then for system services payments are considered in turn. The results show that while BESS can offer opportunities for WPP, the correct sizing and representation of degradation of BESS are critical due to the high capital cost of storage.