Optimizing Energy Storage: A Deep Dive into Innovative Technology for Ancillary Services
February 5th, 2024
With advancements in energy technology, the opportunities to optimize energy storage have become a key factor for both producers and consumers. By storing energy and providing ancillary services to the grid, new doors are opened for increased profitability and more sustainable energy usage.
Balancing the power grid for increased profitability
To maintain stability in the power grid, production and consumption must be kept in balance. When the frequency deviates from 50hz, ancillary services are activated to quickly add or subtract power from the grid to restore and balance the frequency. These services, also known as ancillary services, are crucial for increasing the profitability of energy storage.
Ancillary services are divided into different markets based on resource characteristics.
FCR-N (Frequency Containment Reserve Normal Operation)
This reserve acts during normal operation between 49.9 - 50.1 Hz. It requires sustained capability, with the requested power level maintained for at least 1 hour. The response time for these resources is slightly longer, meaning there is a delay of up to 3 minutes before full power can be provided.
This category is well suited for working with hydropower or batteries with a C-rate below 0.5.
FCR-D Down (Frequency Containment Reserve Disturbance, for excess production)
This reserve acts when the grid frequency reaches 50.1 – 50.5Hz. Frequency deviation can occur when more energy is produced than is consumed by society. An excess must be managed by energy storage activating charging. The requested power level should be maintained for 20 minutes, and the response time is slightly faster than FCR-N.
For FCR-D Down, quicker energy storage with a C-rate between 0.5-2 is suitable. Energy producers such as hydropower, solar, or wind can also offer to reduce their output.
FCR-D Up (Frequency Containment Reserve Disturbance, for low production)
This reserve acts when the grid frequency drops to 49.9 – 49.5Hz. Frequency deviation can occur when less energy is produced than what society consumes, creating a deficit that needs to be managed. Energy storage is activated by starting discharge. The requested power level should be maintained for 20 minutes, and the response time is slightly faster than for FCR-N.
For FCR-D Up, quicker energy storage with a C-rate between 0.5-2 is suitable. Energy producers such as hydropower, solar, or wind can also offer to increase their output.
Local frequency measurement and support services
Utilizing local frequency measurement allows digital analysis tools to determine the optimal time to support the power grid. This concept, known as support services, functions as a standby service where it is sold in advance to entities like Svenska Kraftnät. Facilities are paid to be ready to either inject or withdraw power from the grid, thus contributing to maintaining balance.
Flexible production and cloud-based software
For energy producers such as hydropower, opportunities to regulate production and increase profitability arise. Through the ability to control the output of production, the energy producer’s power can be used for support services. Having an actor who can handle the entire process from bidding to local control of production creates a smooth and efficient solution.
Aire and the innovative cloud-based software are at the heart of the system. Advanced forecasts and presence in various energy markets allow optimal performance for each watt in energy storage. This is a powerful upgrade to maximize profitability and tailor the storage solution to specific needs.
By actively trading support services and continuously evaluating opportunities in different markets, we strive to optimize and ensure maximum profitability for each energy storage system. The possibilities are extensive and provide users with the freedom to tailor their energy use for greater economic benefit and sustainability.
