IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v381y2025ics0306261924025352.html
   My bibliography  Save this article

Profit benchmarking and degradation analysis for revenue stacking of batteries in Sweden’s day-ahead electricity and frequency containment reserve markets

Author

Listed:
  • Mirzaei Alavijeh, Nima
  • Khezri, Rahmat
  • Mazidi, Mohammadreza
  • Steen, David
  • Le, Anh Tuan

Abstract

This paper presents a novel mixed-integer linear programming (MILP) model for revenue stacking of battery energy storage systems (BESSs) in Sweden’s day-ahead (DA) electricity and frequency containment reserve (FCR) markets. The model includes a detailed calendar and cycle battery degradation and market technical requirements modeling that aims to maximize the battery owner’s potential profit from participating in the DA and three FCR markets, FCR in normal operation (FCR-N), and FCR in disturbances (FCR-D) for up- and down-regulations. For presenting comprehensive results, successive daily optimizations are conducted for year 2022 using one-minute resolution real data. Five utilization modes are simulated including participation in no FCR market (only DA), only DA and FCR-N, only DA and FCR-D up-regulation, only DA and FCR-D down-regulation, and DA and all FCR markets. The maximum potential profit from revenue stacking in the DA and multi-FCR markets could have been k€ 708 for a 1MW-1MWh BESS, which is 22 times the profit in no FCR participation case. The annual degradation resulting from multi-FCR market participation was 1.7% of loss in battery capacity. Considering degradation in the optimization problem reduced the aging by 29% without a significant effect on profit. The proposed model can serve as a benchmark for evaluating the profitability and sustainability of battery operation strategies and algorithms.

Suggested Citation

  • Mirzaei Alavijeh, Nima & Khezri, Rahmat & Mazidi, Mohammadreza & Steen, David & Le, Anh Tuan, 2025. "Profit benchmarking and degradation analysis for revenue stacking of batteries in Sweden’s day-ahead electricity and frequency containment reserve markets," Applied Energy, Elsevier, vol. 381(C).
    • Handle: RePEc:eee:appene:v:381:y:2025:i:c:s0306261924025352
    DOI: 10.1016/j.apenergy.2024.125151
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261924025352
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2024.125151?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:381:y:2025:i:c:s0306261924025352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.