A Wholesale Electricity Market is where large-scale buyers and sellers trade electricity in bulk. Prices are determined by supply and demand, with factors like generation capacity, weather, and fuel prices influencing the cost. These markets include day-ahead, real-time, and ancillary services, helping to ensure efficient energy allocation, grid stability, and the integration of renewable sources. Wholesale markets promote competition, reduce costs, and support a reliable, flexible energy system.

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Aggregation of BTM Battery Storages to Provide Ancillary Services in Wholesale Electricity Markets

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The behind the meter battery energy storage systems (BTM-BESSs) have been deployed widely by indus-trial/commercial buildings to manage electricity transaction with utilities in order to reduce customers’ electricity bills. Commercial BTM battery storages are mainly employed to cut the customers’ monthly demand peaks, which is rewarded by significant decrease in the monthly demand charge. However, given complexity of demand charge management problems, the rates of return on investments for installation of BTM-BESSs are not appealing enough. In this paper, an aggregation model for BTM-BESSs is proposed in order to provide the opportunity for the BTM-EMS units to participate in the multiple wholesale markets to provide ancillary services, in addition to the demand charge management, to maximize owners’ payoff from installation of BTM-BESSs. Finally, the efficiency of the proposed aggregation model is validated through the simulation studies on the real value data.

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