Impact of the C-rates and AC-AC RTE on the annual cycles and operation cost of different battery technologies that provide market services

This paper aims to study battery response under two operation strategies to analyze the annual cycles and operation costs (revenues) via sensitivity analysis. A battery model that considers performance parameters (AC-AC RTE, DOD, and C-rates) for different technologies is approached to identify how these parameters influence battery behavior and revenue. Strategies refer to (A) energy arbitrage, EA, and (B) EA and the provision of tertiary reserve. Simulations conducted for real data from Portuguese electricity and regulation markets showed regardless of the strategy used, the annual cycles and revenue are dominated by the performance parameters, instead of price volatility. In addition, for batteries with higher C-rates, as the AC-AC RTE is reduced up to 80%, the annual cycles and revenues are significantly reduced to 50% and 45% respectively, regarding its ideal model (100% AC-AC RTE). For lower C-rates, the annual cycles and revenues are slightly reduced with AC-AC RTE reductions. Specifically, strategy B revealed that annual cycles and revenue could also be influenced by the capacity requirements and the control area where batteries are providing services.