Optimizing grid-connected battery energy storage systems: a comprehensive evaluation methodology

Abstract

The integration of Battery Energy Storage Systems (BESS) into grid infrastructure is revolutionizing modern electricity markets. This paper presents a novel, comprehensive methodology for optimizing the profitability and operational efficiency of grid-connected BESS systems. By integrating cyclic and calendar degradation models, service stacking strategies, and bid acceptance uncertainties, the proposed approach offers a robust framework for long-term economic evaluation. A detailed case study demonstrates the methodology’s effectiveness by assessing a 60 MW BESS’s ability to optimize revenue streams in the UK market through energy arbitrage, frequency regulation, voltage regulation, and capacity market participation. The findings highlight the potential of advanced optimization techniques and data-driven sizing approaches to enhance BESS deployment sustainability and profitability. Policy recommendations are provided to support informed decision-making in the energy sector.