Business Case - Batteries and solar
Optimizing the use of Batteries by Utilities
Power utilities start using Battery Energy Storage Systems, BESS, to distribute the energy generated by their solar panels along the day as Ancillary Services. Electricity prices change along the day, we can help you exploit the arbitrage that exists on a daily basis. During the mid hours of the day, solar panels produce a lot of electricity that may or may not be required at that moment and when electricity prices are not that high. In the evening, after the sun goes down, and while people are still awake and active, electricity prices are at their peak, the best time to sell electricity.
Maximizing Profit One Hour at a Time
The image to the right shows the mechanics of what algorithms that control batteries should do. Some solar power generated during the early to mid hours of the day could be used to charge batteries. The energy stored could then be sold by the end of the day, just when the price of electricity is at its highest.
Algorithms Used
The algorithms used to regulate the batteries behavior are the day ahead demand forecast, the day ahead price forecast and a mixed integer programming model which will be organizing the charge and discharge of batteries on an hourly basis to maximize the profit on a daily basis. The use of an automatically run algorithm is required to optimize the early day ahead transactions.
Battery Load/Unload vs $/MWh, Arbitrage
The following graph comes from EIA.gov for the entire CAISO region. The period is from Jun 19 to Jul 2 2024. It shows that California batteries are enjoying the daily arbitrage. When the electricity price is low, when the solar panels are generating electricity, the batteries are charging. When the electricity price is high, at the end of the day, the batteries are discharging. Utility companies are making very good money with this arrangement.