The impact of Ancillary Services in optimal DER investment decisions

Date Published
07/2017
Publication Type
Journal Article
Authors
DOI
10.1016/j.energy.2017.04.124
LBL Report Number
LBNL-2001059
Abstract

Microgrid resource sizing problems typically include the analysis of a combination of value streams such as peak shaving, load shifting, or load scheduling, which support the economic feasibility of the microgrid deployment. However, microgrid benefits can go beyond these, and the ability to provide ancillary grid services such as frequency regulation or spinning and non-spinning reserves is well known, despite typically not being considered in resource sizing problems. This paper proposes the expansion of the Distributed Energy Resources Customer Adoption Model (DER-CAM), a state-of-the-art microgrid resource sizing model, to include revenue streams resulting from the participation in ancillary service markets. Results suggest that participation in such markets may not only influence the optimum resource sizing, but also the operational dispatch, with results being strongly influenced by the exact market requirements and clearing prices.

Journal
Energy
Volume
130
Year of Publication
2017
Pagination
99-112
Keywords
Organizations
Research Areas
File(s)
Download citation