A market and technological analysis on battery system integration in wind farms to provide frequency control services in Nordic reserve market

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Journal Title

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Volume Title

Kemian tekniikan korkeakoulu | Master's thesis

Date

2023-08-21

Department

Major/Subject

Industrial Energy Processes and Sustainability

Mcode

CHEM3044

Degree programme

Master’s Programme in Advanced Energy solutions (AAE)

Language

en

Pages

79+11

Series

Abstract

The renewable energy sector has seen significant growth in recent decades, now the focus is shifting towards achieving self-sufficiency, reliability, and security in the system. A stable electric power system requires a well balance between electricity supply and demand, where frequency serves as an indicator of this balance. However, the increasing use of intermittent renewable energy sources has led to higher frequency deviations. Therefore, there is a growing demand for ancillary services to support the integration of renewable energy. Currently, the Nordic area relies on hydro, standalone batteries, demand-side response, and thermal energy for frequency control services, while the potential of wind energy remains underutilized for grid stability. This thesis aims to investigate the feasibility and economic viability of integrating a Battery Energy Storage System (BESS) with a wind farm. The study reveals that a wind-BESS configuration is well-suited for the hourly market, particularly in providing frequency containment reserve and fast frequency reserve services. De-spite several grid-scale BESS projects in development, the high investment cost and limited battery lifespan have made it a risky proposition for most wind power providers in the Nordic area. The thesis includes a case study that demonstrates how a wind-BESS can generate revenue more effectively by providing different frequency control services during their peak demand, the strategy is identified as “service stacking”. Additionally, the study identifies market gaps and highlights the significant aspects where government can support to foster an inclusive reserve market for wind-BESS technology.

Description

Supervisor

Järvinen, Mika

Thesis advisor

Garg, Neha

Keywords

ancillary service market, battery energy storage system (BESS), reserve market, battery management system

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