John
Atherton
ab,
Jethro
Akroyd
ab,
Feroz
Farazi
a,
Sebastian
Mosbach
ab,
Mei Qi
Lim
ab and
Markus
Kraft
*abcd
aDepartment of Chemical Engineering and Biotechnology, University of Cambridge, Cambridge, CB3 0AS, UK. E-mail: mk306@cam.ac.uk
bCambridge Centre for Advanced Research and Education in Singapore, CARES Ltd., 1 Create Way, CREATE Tower #05-05, 138602, Singapore
cSchool of Chemical and Biomedical Engineering, Nanyang Technological University, 62 Nanyang Drive, 637459, Singapore
dThe Alan Turing Institute, London, UK
First published on 5th August 2023
Energy storage systems (ESSs) are a potential solution to the rising issues of electricity price volatility and curtailment of British wind energy. This study performs an extensive and knowledge graph supported investigation into 47 potential wind farm ESS co-location sites. While all ESSs achieved payback due primarily to price arbitrage, results indicate English/Welsh sites (typically with offshore wind) had quicker payback times owing to higher capacity factors presenting more opportunistic charging times. Conversely, while batteries co-located with Scottish wind farms attained slower payback times, they accomplished greater curtailment reductions, which could be used to displace marginal selling from generally fossil fuelled sources.
Broader contextThroughout the globe energy systems and networks are undergoing a monumental transition. A vast expansion of variable renewable energy (VRE) generation from wind and photovoltaic solar lies at the centre of this change. The British grid is no exception to these trends, with vastly expanded VRE capacity (particularly from wind) there have also been increased difficulties for the transition network (despite expansions) and energy market. An increased adoption of battery energy storage systems (BESSs) is one potential solution to address these difficulties. If the integration of increased VRE generation into the grid cannot be addressed, then market challenges such as price volatility, and network challenges which may result in curtailment will hinder the uptake of VRE, and by extension require demand continue to be met by energy technologies with poorer environmental impacts. By techno-economically studying the viability of ESS attachments at British wind farms, a greater understanding of the environmental impacts of these storage systems and their role in the energy network may be achieved. This of importance to not only the academic community, but also to industry and energy policymakers who are presently investigating the role of expanded energy storage systems in many of their proposed transition pathways. |
Throughout this expansion, transmission curtailment has grown as a source of energy loss in Britain, preventing the export of particularly Scottish wind power to the grid. Curtailment and grid stability in high VRE environments are examined across a variety of countries.3 Mitigating these losses through interconnection, storage, or the conversion of otherwise curtailed energy into heat or hydrogen have all been suggested as potential solutions.4 Without dispatchability or compensation, periods of high VRE penetration and lower prices (due to cannibalisation5) lower the financial returns of VRE sites. To later export energy which would have been curtailed or exported at a low price, numerous British wind farms expect to construct co-located ESSs.6
While the topic of VRE expansion has been widely investigated, the effect on prices and price volatility varies between case studies.7–12 Based on the comparative timing of VRE penetration relative to demand peaks, for example, an investigation of Germany and Denmark found increased renewable penetration to have resulted in increased price volatility in the former country, but not the latter.13 In Britain, price volatility has increased in recent years for a number of reasons, with VRE (particularly wind) penetration being greater during periods of lower energy price; which presents an opportunity for arbitrage.14–16
British wind energy curtailment is clearly documented, and is concentrated in Scottish wind farms; primarily due to transmission constraints.14,17 Were this energy to be stored, it may later be exported to generate additional revenues and potentially displace emissions intensive generation.18,19 This provides an economic and environmental incentive to potential ESS attachments in addition to the potential for arbitrage.
On a national level, such as in the UK as a whole, expansions of storage are determined to be a requirement of increased VRE penetration,20–24 though comparative studies suggest significant national differences.25 Large scale studies also recommend expansions of storage technology.26–28 These may investigate shorter or longer term storage, though lithium-ion technology presently dominates over29 competing battery chemistries.30 This is to the extent that particular attention has been paid to the supply chain, and economy of scale recycling of lithium-ion batteries.31–33 Other technologies of note in these studies include hydro, hydrogen/ammonia, geothermal, biomass, and compressed air.28,29,34,35 Further demand scheduling and related approaches include electric vehicle (EV) charging, smart industry, household applications, and renewable fuel production.36–40
As ESSs are often planned, and have their energy returns on investment calculated on a site by site basis, studies are also performed on an individual farm basis; including in Britain.6,41 Current literature examines curtailment mitigation for Scottish wind farms (Whiteley and Gordonbush).41 By only investigating a limited number of sites, the investigation of broader trends remains an open question. Large scale investigations into ESS model input factors such as price volatility and geospatial curtailment, however, identify trends of their own.42
A larger scale analysis which considered a variety of wind farms would be required for such an inquiry. This scale would extend to the number of farms, their placement onshore or offshore, their locations in Britain given regional influence on transmission constraints which cause curtailment,42 and the flexibility of their modelling such that both price arbitrage and curtailment mitigation are permitted. The investigation of ESS attachments throughout Britain would therefore be of great interest to examine the potential for storage solutions.
This paper performs a study of this scale. Using a knowledge graph framework, this investigation accordingly expands upon existing literature by considering 47 wind farms throughout Britain for comparison. A linear optimisation model for battery attachments, a common approach in power modelling,43 is used to determine the economic returns of co-located storage units. Using a flexible methodology which permits both price arbitrage and curtailment mitigation, this study provides an integrated investigation into ESS behaviour. These results are used to determine the economic viability of wind farm co-located ESSs.
By specifically considering the replacement of marginal generator emissions from the imbalance market, this paper develops and utilises a decarbonisation estimation method suitable to the investigation of individual site ESS attachments; where existing literature may instead make assessments on an aggregate or bus network basis, but is comparably lacking in site specific analyses.44,45 This method is calculated on a site specific basis, and applied to curtailment reductions. The purpose of this study is therefore to determine the economic and decarbonisation performance (via curtailment reduction) of ESS attachments throughout Britain. From these results, broader trends are investigated and limitations are discussed. Leading wind farm co-location sites are identified with respect to payback time and decarbonisation (via curtailment reduction).
For rapid response times, capacitor, superconducting magnetic, and flywheel energy storage systems exist,29,53 though electro-chemical batteries are more common. The chemistry of these include lead acid, lithium ion, sodium (e.g. NaS, NaNiCl), and redox flow (e.g. V-Redox, ZnBr, Zn–air) types.29
Lithium ion batteries are the most commonly deployed design in the context of VRE co-located storage. The UK Government's Renewable Energy Planning Database includes entries for co-located battery units.6 Here, lithium ion batteries are extensively used as the ESS technology type of choice.54–56 The capacities of these batteries vary from 0.1 to 40 MWh, with a size of 1 MWh being the most common.
Other solutions exist to fulfil longer term (larger scale) storage requirements. In Britain re-pumped hydro is the most widely used.52 Further technologies include compressed air, hydrogen (made from water or natural gas, using electrolysis, thermolysis, etc.), and synthetic natural gas energy storage.29,57 Ammonia conversion may also be used to expand the applications of hydrogen storage (including with VRE co-location);58–62 though this is more applicable to seasonal storage or long distance fuel transport via shipping.63,64
In addition to the aforementioned planned lithium ion attachments, large volumes of hydro storage also exist in Britain.52 Their placement, however, is more geographically restricted, and thus these reserves are more suitable to long term, rather than the short term co-location applications this paper will focus on. Co-location not only particularly suitable to addressing curtailment (especially curtailment resulting from grid constraints),41 but is also recommended by a Monte Carlo simulation by the University of Exeter, which concluded co-location to result in more uniform storage device operation.65 British Wind Farm and ESS studies may be conducted on a site specific basis,41,42 or with a simulated grid.66 Various curtailment and frequency control studies focus specifically on site specific investigations.41,67,68 Furthermore, the dispatch of wind farm co-located ESSs, such as into the balancing market, is also studied on a site specific basis.69
Research from ETH Zurich, using IEA data, confirms the dominance of lithium ion and pumped hydro outside of the UK as well. By comparison far more negligible shares were found for vanadium redox flow, lead–acid, and sodium–sulfur batteries, as well as compressed-air and other storage types.30 This was projected to continue (with increasing lithium ion investment in net and proportional terms) through to 2030.30 Specifications of these storage technologies were also provided, and are broadly consistent with previous literature such as that summarised by Cardiff University in a review of their own.29 Capital expenditure figures therein also fall within the price ranges of cost specific projections by MIT and the National Renewable Energy Laboratory.70,71
• Size: 1 MWh.6
• Charge/discharge rate: 0.5C (i.e. 2 hours for full charge/discharge).72
• Efficiency: 95%.30
• Lifespan: 12 years, and 4996 cycles (at optimal DOD).30
• Optimal DOD: 80%.72
• Cost: 316000 USD per MWh.30 Using the 2021 USD/GBP exchange rate of 1.162995,74 this is 271
712 GBP per MWh.
The above efficiency will consider round-trip and inverter losses, but not transmission or distribution losses. As ESS attachments will be co-located, it is assumed that all transmission and distribution losses will only occur after energy is exported from a site, as would be the case if it were simply exported from a wind farm directly.
For the purposes of economic modelling, a discount rate of 10% will be used, as is consistent with existing literature.75 Future investigations should also be aware of the potential for falling costs,76 though this paper will use the above existing battery specifications from recent literature. Changes in the market prices of future years would also impact these results as this modelling assumes market exposure to live prices.
Fuel type | Carbon intensity (gCO2 per kW h) |
---|---|
Biomass | 120 |
Coal | 937 |
Gas (Combined cycle) | 394 |
Gas (Open cycle) | 651 |
Hydro | 0 |
Nuclear | 0 |
Oil | 935 |
Other | 300 |
Solar | 0 |
Wind | 0 |
Pumped storage | 0 |
French imports | Approx. 53 |
Dutch imports | Approx. 474 |
Belgium imports | Approx. 179 |
Irish imports | Approx. 458 |
While this study utilises generation emissions in accordance with the reporting of the above sources, it should be noted for future investigations seeking to investigate lifecycle emissions, that more sources may be considered. These include upstream emissions from mining and extraction, including the emission of more potent greenhouse gasses such as methane. Emissions associated with the mining, refining, and manufacturing of ESSs may also be of interest. Due to its shorter time-span, these sources fall out of the scope of this investigation, but are still noteworthy.
By using this unique approach a variety of data sources and agents may be coordinated, allowing more sophisticated analyses to be performed. In this manner data on electricity exports, electricity curtailment, electricity price, and the specific station or generators supplying this energy is collected and stored. This is combined with further information on batteries and emissions taken from other sources. Finally, an interconnected ESS agent is utilised to simulate ESS attachments. The outputs of this simulation serve as the basis for this investigation's conclusions.
This paper proposes two main data framework expansions to facilitate its analysis.
The first of these is a representation of the output (export and curtailment) of energy/power. This may be seen in Fig. 1.
![]() | ||
Fig. 1 Ontology of generated power/energy. Boxes represent categories/items while the colour coded lines between them represent instances/relationships. |
Fig. 1 displays an ontology structure which breaks down generated electricity in terms of:
• Generation infrastructure: power plants may consist of multiple power generators, which generate electricity. These may be identified based on their registered resource names (RRNs) or energy identification code (EICs).
• Generated electricity: this generation is split into its active and reactive components, which may be quantified in terms of power or energy.
• Curtailed/exported electricity: active power/energy (as equivalent data isn’t known or required by this investigation for reactive power/energy) is further divided into curtailed and exported sub-classes.
• Stored data: the values of this generated electricity are stored as time-series datasets with associated units. This includes curtailed and exported electricity values, which inherit these properties as sub-classes.
Secondly, the properties of the ESS attachment may also be represented, as is shown in Fig. 2. This builds upon the ontology developments of prior literature.88Fig. 2 stores information for energy storage systems and a broader energy system (with respect to its point of grid connection) in terms of:
![]() | ||
Fig. 2 Ontology of energy storage system specifications. Boxes represent categories/items while the colour coded lines between them represent instances/relationships. |
• Energy system (grid connection):
– Energy flows: energy exported (negative if imported) is defined for energy systems as a time-series dataset, with defined units.
– Contract: the remaining properties are defined in terms of an energy contract. These include export/import limits (with units), and export/import prices (time-series datasets with units).
• Energy storage system:
– Energy storage system properties: a variety of properties are defined for energy storage systems including capacity, efficiency, charge/discharge limits, and minimum/maximum states of charge. Where applicable these have defined units.
– Energy storage system time-series values: energy discharge (negative value when charging) and the state of charge are also defined. These have defined units and have their values stored as time-series datasets.
![]() | (1) |
• The set of time instances are defined as t ∈ T, from t = 1 to t = n, with t = 0 being the time-step prior to the set over which the optimisation occurs (time periods in this investigation being half an hour in length);
• πbt and πst are price of buying and selling energy at time t, and,
• Egd+t and Egd−t are respectively the purchased/injected energy volumes into the grid (MWh) at time t.
0 = Egd +t − Egd−t + Eess+t − Eess−t + Evret − Elt − Ect | (2) |
• Eess+t and Eess−t respectively represent energy (MWh) discharged/charged by the storage system at time t;
• Evret symbolises the variable renewable energy (VRE) output (MWh) at time t (in this study, these are from onshore and offshore wind farms), including curtailments as per output = export + curtailment;
• Elt represents the load (MWh) at time t (local loads were not attached to any ESS, so these are all 0 in this investigation, though the model was designed as such for future investigations), and,
• Ect represents energy curtailed at time t (MWh), specifically the model output, rather than the initial level of curtailment before the addition of the attachment.
SOCt = SOCt−1 + (ηess− × Eess−t − Eess+t/ηess+) × 100/Eess | (3) |
• SOCt denotes the ESS's state of charge (%) at time t;
• ηess+ and ηess− respectively symbolise the ESS discharge/charge efficiency (factor), and,
• Eess is the ESS storage capacity (MWh).
Initial and final states of charge are defined, and set to equal one another (SOCt=0 = SOCt=n).
ESS flow limits are:
0 ≤ Eess+t ≤ Eessmax | (4) |
0 ≤ Eess−t ≤ Eessmin | (5) |
State of charge (SOC) limits are:
SOCessmin ≤ SOCt ≤ SOCessmax | (6) |
Grid limits are:
0 ≤ Egd+t ≤ Egdmax | (7) |
0 ≤ Egd−t ≤ Egdmin | (8) |
For each time period t, if curtailment exists (Evrect ≠ 0), then an additional grid constraint is enforced. Under this constraint, the new amount exported from the system cannot exceed the previous amount exported during the period of curtailment (Evret − Evrect), i.e. curtailed energy can either be stored by the ESS during this time period, or continue to be curtailed. This yields the following constraint:
0 ≤ Egd+t − Egd−t + (Evret − Evrect). | (9) |
0 ≤ Evret + Eess+t − Eess−t | (10) |
It is recommended that the impact of ≤0 energy prices be validated, particularly in studies without limitations such as that described in eqn (10). For example, ESS degradation may be encouraged by repeatedly charging and curtailing (which may not be an intended behaviour).
Furthermore, during periods of 0 GBP energy prices, all energy which can be exported, is exported (to prevent distortions in results from a financial indifference between curtailing or exporting during these periods). Finally and most importantly, for the effect of the ESS attachment to be properly understood, simulations are run with and without (no capacity) an ESS. This is because the ESS script would save money by curtailing exports during periods of negative price (which could occur), which would be counted as a financial gain, even though the ESS is not responsible for it. By running the model with and without an ESS, the results/returns specifically from the ESS may be determined.
Using this methodology, an ESS model is created which maximises financial returns. These financial returns are generated via the export of energy from the site (wind farm and/or ESS), with curtailment subsidies or fees not being considered. This model is run with and without an ESS to determine changes made by its co-location with the wind farm, as opposed to other motivated changes by the model. Potential additional strain on the grid by charging the ESS from the power network is prohibited, with co-location being the topic of interest, and permitted export levels are capped at their current levels during periods of curtailment. Using the outputs of this simulation, the financial returns, and curtailment reductions resulting from the ESS attachments are calculated. An example run using sample data may be found in the ESI.†
Farm | Loss | Gain | Net |
---|---|---|---|
Name | (MWh) | (MWh) | (MWh) |
Aberdeen | −69.2 | 0 | −69.2 |
Arecleoch | −66.51 | 26.22 | −40.29 |
Baillie | −66.19 | 50.22 | −15.97 |
Beatrice | −69.88 | 64.18 | −5.69 |
Beinneun | −67.28 | 1.96 | −65.32 |
Bhlaraidh | −61.28 | 66.04 | 4.75 |
Blackcraig | −70.05 | 0.82 | −69.23 |
Black Law | −57.97 | 22.25 | −35.73 |
Black Law II | −51.45 | 24.63 | −26.82 |
Barrow | −71.39 | 2.78 | −68.61 |
Burbo Extension | −72.32 | 10.14 | −62.18 |
Braes of Doune | −60.02 | 51.86 | −8.16 |
Berry Burn | −69.21 | 51.52 | −17.68 |
Corriegarth | −59.64 | 48.51 | −11.13 |
Clyde (Central) | −69.32 | 30.56 | −38.76 |
Clyde (North) | −69.47 | 38.78 | −30.69 |
Clyde (South) | −66.54 | 24.58 | −41.96 |
Crystal Rig II | −58.46 | 6.38 | −52.07 |
Dudgeon 1 | −78.22 | 0 | −78.22 |
Dersalloch | −64.65 | 41.9 | −22.75 |
Dunmaglass | −66.4 | 32.22 | −34.18 |
East Anglia One | −79.59 | 16.89 | −62.71 |
Fallago Rig | −67.87 | 27.18 | −40.69 |
Galawhistle | −57.34 | 22.94 | −34.39 |
Gunfleet Sands 1 & 2 | −73.93 | 2.46 | −71.46 |
Greater Gabbard | −79.62 | 5.24 | −74.38 |
Griffin | −58.91 | 58.93 | 0.02 |
Hadyard Hill | −63.23 | 19.72 | −43.51 |
Humber Gateway | −75.55 | 11.19 | −64.36 |
Hornsea 1 | −78.84 | 21.85 | −56.99 |
Harestanes | −62.25 | 34.59 | −27.66 |
Kilbraur | −63.35 | 59.95 | −3.4 |
Kilgallioch | −66.86 | 59.63 | −7.23 |
Lochluichart | −61.09 | 38.29 | −22.8 |
Millennium | −63.29 | 45.28 | −18.01 |
Mark Hill | −63.92 | 13.65 | −50.26 |
Race Bank | −76.58 | 12.56 | −64.01 |
Rampion | −76.56 | 0 | −76.56 |
Robin Rigg East | −63.34 | 0 | −63.34 |
Robin Rigg West | −63.86 | 0 | −63.86 |
Stronelairg | −69.8 | 28.76 | −41.03 |
Strathy North | −61.48 | 87.99 | 26.51 |
Whitelee | −67.25 | 36.89 | −30.36 |
Walney 1 & 2 | −74.93 | 2.46 | −72.47 |
Walney 3 | −72.05 | 21.65 | −50.4 |
Walney 4 | −68.34 | 21.68 | −46.66 |
Westermost Rough | −77.25 | 4.1 | −73.15 |
Geographic site locations may be found in the ESI.†
While later analysis will consider financial gains and emissions reductions from simulated installations, these initial results will simply display the net flow differences between running the model with and without an ESS for each wind farm. ESS behaviour was optimised to maximise financial returns, which are achieved through two means.
The first is to charge during periods of lower energy prices and export during periods of higher energy prices, i.e. arbitrage. Due to the charging and discharging of the ESS this incurs losses due to inefficiency of the battery. An efficiency loss due to price arbitrage, however, is not inherently negative, as may promote price stabilisation, mitigate dispatchable fossil fuel use in the imbalance market, or enable the expansion of wind energy infrastructure by lowering the risk of cannibalisation.
The second mechanism for increasing revenues is to charge the ESS using curtailed energy. As with energy exports, energy curtailments are also recorded for the year of 2021. Instead of curtailing wind energy, this may instead be stored for later export. By doing so the system may export more energy than it otherwise would have. Both the systems with and without the ESS were permitted to curtail energy to ensure a fair test in comparing their financial results (i.e. if the plant exported during a period of negative price by default, this was permitted to be curtailed by the non-ESS system, as financial benefits due to this curtailment in the ESS system would be the result of permitting curtailment, rather than due to the ESS attachment itself).
In Table 2 only the Strathy North, Bhlaraidh, and Griffin wind farms obtained a net positive energy output to the grid due to prevented curtailment losses exceeding price arbitrage operation efficiency losses. These three wind farms unsurprisingly had the respectively largest curtailment rates for 2021. A net gain or loss does not explicitly imply a positive or negative ESS performance, but rather gives an indication of the relative price stabilisation vs. curtailment reduction roles performed by an ESS attachment. Conversely, wind farms without recorded curtailment instances in 2021 had no curtailments to mitigate, and thus only arbitraged price.
![]() | ||
Fig. 3 2021 revenue increases modelled for an ESS attachment at various wind farm sites. No Onshore England/Wales wind farms are considered in this paper. |
These returns differ on a site by site basis. Relatively lower curtailment English/Welsh offshore wind farms tend to be the best performers. A breakdown of these factors is performed in the ESI.† While these factors (onshore vs. offshore, Scottish vs. English/Welsh) can’t fully explain the differences between individual wind farms on a site specific level of granularity, some broad trends are observed.
As was noted with respect to Table 2, the role of price arbitrage tends to be more significant than curtailment reduction. Given that the ESS may only charge using locally generated energy, which is more consistently produced by English/Welsh offshore wind farms (enabling more opportunities for price arbitrage), these sites generate superior returns. Conversely, Scottish sites (which tend to be curtailed at higher rates) generate lower returns (though predictably higher curtailment reduction as noted in Table 2).
![]() | ||
Fig. 4 Percentage of the time each generator type was the marginal seller in the imbalance market in 2021. |
The most common marginal seller, and therefore generation type to be displaced if marginal selling was instead performed by an ESS, is combined cycle gas. The emissions intensity of gas is 394 gCO2 per kW h. By comparison, the average marginal seller emissions rate is 396.45 gCO2 per kW h.
Specific emissions rates may be determined on a site by site basis. When an ESS exports energy into the grid, the marginal seller type in the imbalance market (which sets the spot price of energy from the grid due to being the marginal generator, and may similarly be regarded as a marginal emitter which the ESS may displace) may be recorded. A breakdown similar to that of Fig. 4 may be performed, but on an ESS specific basis rather than for the entire grid. Thus, emissions reduction intensities may be estimated for each ESS attachment. More detail is provided in the ESI.†
Fig. 5 displays a breakdown of the marginal seller type during periods of ESS export. This may be used to determine site specific emissions (reduction) intensities; used later. The average composition across sites is 83.49% gas, 4.47% coal, 11.63% hydro, and 0.41% wind. This results in an average emissions (reduction) intensity of 370.84 gCO2 per kW h. Site specific intensities used for later analysis are noted in the ESI.† This lower rate compared to the marginal seller average (though still significantly greater than that of the overall energy market) is primarily due to the higher proportion of hydro as the marginal seller when the ESS exports energy into the grid. These trends hold for each specific site.
![]() | ||
Fig. 5 Marginal seller type (percentage of the time) during the ESS exports at each site. These percentages are labelled for each type besides wind (to save space), though these may be seen in the ESI.† |
In Fig. 5 the higher rate of hydro marginal selling during periods of ESS export, compared to the average rate of hydro marginal selling in imbalance market, may be seen. Using these results, Fig. 6 displays the emissions intensity of the average marginal seller for each site. As mentioned earlier, each of these may be seen to fall below the average marginal seller emissions intensity, due to attachments being more likely to export during periods of hydro marginal selling (which has a 0 gCO2 per kW h emissions intensity). While hydro (e.g. pumped) is used for longer term storage applications than batteries, some competition evidently exists between the dispatching recommended by this model, and actual hydro deployment in the grid as the marginal seller.
Country | Loss | Gain | Net |
---|---|---|---|
(MWh) | (MWh) | (MWh) | |
Scotland | −2117.36 | 1116.43 | −1000.89 |
England | −1055.17 | 133 | −922.16 |
Payback times are given in Table 4. Here, all ESS attachments are shown to achieve payback. All but three of these do so in 3000–3500 cycles, and all but two do so in 2–3 years. Attachments with higher returns (Fig. 3) naturally obtained faster paybacks (which the model attempts to minimise), however as a result there is no strong trend between a quick payback and a payback in the minimum number of cycles.
Farm Name | Years to payback | Cycles to payback |
---|---|---|
Aberdeen | 2.31 | 3250 |
Arecleoch | 2.33 | 3168 |
Baillie | 2.48 | 3343 |
Beatrice | 2.64 | 3754 |
Beinneun | 2.33 | 3195 |
Bhlaraidh | 2.64 | 3301 |
Blackcraig | 2.27 | 3242 |
Black Law | 2.61 | 3086 |
Black Law II | 3.99 | 4167 |
Barrow | 2.24 | 3252 |
Burbo Extension | 2.22 | 3261 |
Braes of Doune | 2.61 | 3206 |
Berry Burn | 2.39 | 3365 |
Corriegarth | 2.68 | 3256 |
Clyde (Central) | 2.32 | 3278 |
Clyde (North) | 2.33 | 3294 |
Clyde (South) | 2.38 | 3222 |
Crystal Rig II | 2.56 | 3049 |
Dudgeon 1 | 2.05 | 3252 |
Dersalloch | 2.50 | 3295 |
Dunmaglass | 2.42 | 3269 |
East Anglia One | 2.03 | 3274 |
Fallago Rig | 2.34 | 3245 |
Galawhistle | 3.18 | 3719 |
Gunfleet Sands 1 & 2 | 2.11 | 3168 |
Greater Gabbard | 2.01 | 3247 |
Griffin | 2.71 | 3263 |
Hadyard Hill | 2.51 | 3244 |
Humber Gateway | 2.10 | 3216 |
Hornsea 1 | 2.04 | 3258 |
Harestanes | 2.52 | 3202 |
Kilbraur | 2.56 | 3310 |
Kilgallioch | 2.39 | 3262 |
Lochluichart | 2.62 | 3272 |
Millennium | 2.51 | 3249 |
Mark Hill | 2.41 | 3150 |
Race Bank | 2.07 | 3225 |
Rampion | 2.07 | 3217 |
Robin Rigg East | 2.43 | 3142 |
Robin Rigg West | 2.41 | 3143 |
Stronelairg | 2.34 | 3320 |
Strathy North | 2.64 | 3310 |
Whitelee | 2.31 | 3156 |
Walney 1 & 2 | 2.16 | 3288 |
Walney 3 | 2.29 | 3360 |
Walney 4 | 2.37 | 3294 |
Westermost Rough | 2.06 | 3227 |
As such, quick paybacks (primarily due to price arbitrage) are noted for all attachments, though this is contingent on the limiting number of cycles specified for attachments. The specifications of this limit, however, vary between sources, so although the specifications taken from literature an inputs for this analysis proved sufficient, these results would vary based on advised changes in ESS specifications including their performance and lifespan.
The broader effects of price arbitrage, and its price stabilising behaviour (and potential complementary role alongside existing and new VRE deployments via reduced cannibalisation) are not investigated in this analysis. Instead, this paper investigates ESS performance on a site by site basis, thereby focusing instead on the returns generated by arbitrage rather than secondary effects. Other impacts, such as the impacts on hydro storage behaviour via the disproportionate competition with battery attachments, also fall out of the scope of this study. Curtailment reduction, however, may be more directly understood on a site by site scale.
Emissions reductions estimated by this paper, therefore, are calculated using the site specific emissions rates from Section 4.3 and the wind farm curtailment reductions from Section 4.1. Due to similarity across sites in the results of Fig. 6, these reductions are primarily the result of the volume of curtailment reduction. These estimated emissions reductions may be seen in Fig. 7.
The emissions reductions shown in Fig. 7 refer only to reduced curtailment volumes multiplied by the average imbalance market emissions intensities for each ESS. The decarbonisation role of ESSs is much more extensive, with this study focusing on direct and site specific flows (such as curtailment reduction).
The sites where battery attachments have most increased financial returns or system exports, differ. This may be visually represented by mapping the top 10 sites with respect to the criteria of shortest payback time, and emissions reduction via curtailment mitigation. Fig. 8 displays these sites alongside operation/under construction wind farm battery attachments. These operation/under construction ESSs are taken from the Renewable Energy Planning Database6 list, where numerous ‘Co-located with RE’ batteries are listed for wind, solar, hydro, and biomass. Of these, those co-located (or planned to be) with wind farms were used.
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Fig. 8 The markers on the map show the top 10 model recommended locations for 1 MWh ESSs to be collocated with wind farms. These recommendations are determined based on sites with the greatest CO2 reduction (from exporting otherwise curtailed energy) and quickest payback times (partially achieved via the export of otherwise curtailed energy, but primarily from price arbitrage). Constructed and under construction co-located battery attachments with wind farms reported externally are also displayed.6,90 Circle markers are scaled by ESS size (with modelled ESSs all being 1 MWh). Offshore wind farm ESSs are shown on site, while in practice they may be placed near a coastal point of connection. |
Other assets are also provided by this database, such as rejected batteries, and ESSs in earlier stages of planning. Energy storage projects which are not co-located with generators are also provided. This analysis, however, does not permit ESSs which increase demand (i.e. charge from the grid), and as such only co-located batteries (which may charge from the wind farms to which they are attached) are considered.
Fig. 8 shows the leading curtailment reducing (and by extension, directly CO2 mitigating) ESS co-location sites to be in Scotland. Conversely, the batteries which achieved the quickest paybacks are located off the English/Welsh coast. When examining constructed, or under construction ESSs which are co-located with wind farms, however, deployments can be seen to have been made in both locations (though there only 5 examples).
For ESSs co-located with wind farms in 2021, however, two key clusters are visible. In England/Wales, ESSs co-located with high capacity factor offshore wind farms had more opportunities to arbitrage energy prices. Note that ESSs in this study were permitted to charge only from their co-located generators. Given that price arbitrage was found to be more economically significant than curtailment reduction, these sites achieved the quickest payback times.
In Scotland, where more curtailment exists, so too is there more curtailment reduction. The financial benefit of exporting curtailed energy was less significant than price arbitrage, though these farms also achieved payback. In three instances, curtailment reductions were high enough to exceed energy losses from battery inefficiency. This is despite most ESS operations being the result of charging and discharging due to price levels, rather than charging using curtailed energy. ESS curtailment reduction at Strathy North, Bhlaraidh, and Griffin was therefore significant enough, in a price optimising model framework, to result in a net increase in energy exports. For the remaining sites, storage behaved more typically, by dispatching in response to price, but at a loss due to inefficiency.
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Fig. 9 Bars represent: curtailment percentage (%) of British Wind Farms in 2021.14–16,51,52,77 Bar colours represent: farm type/location. Diamonds represent: renewable Energy Foundation values (only available for some farms).17,91,92 |
More detail on curtailment, with respect to geographic site placements and differing curtailment rates in different sources, may be found in the ESI.†
Table 5 displays the payback per MWh for these sites. Results therein are extremely consistent, with only minimal diminishing returns observed. This indicates modelled ESSs were suitably sized for the purposes of this study, with ESS size not distorting the results. As costs are linear, these differences similarly have a negligibly effect on payback times.
Name | 1 MWh | 2 MWh | 3 MWh | 4 MWh |
---|---|---|---|---|
Greater Gabbard | 144 | 143 | 143 | 143 |
East Anglia One | 143 | 143 | 143 | 142 |
Hornsea 1 | 142 | 142 | 142 | 142 |
Dudgeon 1 | 141 | 141 | 141 | 140 |
Westermost Rough | 141 | 141 | 140 | 139 |
Race Bank | 140 | 140 | 140 | 139 |
Rampion | 140 | 140 | 139 | 139 |
Humber Gateway | 139 | 138 | 137 | 136 |
Gunfleet Sands 1 & 2 | 138 | 137 | 137 | 136 |
Walney 1 & 2 | 135 | 135 | 134 | 134 |
The output of these economic dispatch simulations are analysed with respect to their economic and environmental impacts. Opportunities for economic returns are made possible by price arbitrage and exporting (selling) otherwise curtailed energy at a later time. For economic returns, and therefore payback, price arbitrage was more significant. Emissions reduction is made possible by the combination of curtailment reduction and the emissions intensity (determined from imbalance market marginal selling) of displaced generation. With emissions intensities being relatively similar, curtailment reduction volumes are the most significant factor for these carbon emissions reductions via marginal generator displacement.
Given the significance of deferring wind energy exports during periods of lower energy prices, to periods with higher energy prices, exploiting these fluctuations has been the main source of ESS returns. While returns were generated by reducing curtailment, these were less significant from price arbitrage returns, to the extent that English/Welsh offshore wind farms, which have some of the lowest curtailment rates, achieved the fastest payback times. ESS performance is therefore primarily dependant upon price volatility providing opportunities for price arbitrage.
ESSs are broadly used for demand and price smoothing in grids, rather than to directly increase energy levels. Given the ability of attached ESSs to reduce curtailment, however, increased exports made available via curtailment reduction represent a direct increase in system energy output volumes. These volumes were used to determine the emissions reduction (via curtailment reduction) potential of each site. In three cases this effect was significant enough for ESS attachments to result in net energy volume export increases. In the remaining cases, however, while curtailment reductions could occur, losses from price arbitrage exceeded curtailment reduction. While the environmental impacts of this smoothing fall outside this paper's scope, which investigates emissions reduction via lowered curtailment in particular, their study is recommended in the context of future techno-economic VRE construction examinations.
Taking the ESS which accomplished the greatest curtailment reduction, Strathy North, for example, payback from curtailment reduction alone would be insufficient. Strathy North reduced curtailment by 87.99 MWh, with an average export price of 168.81 GBP per MWh. If this were repeated for its 12 year lifespan at a 10% discount rate then it would only return 39.23% of its initial investment cost, i.e. payback would not be achieved. An average export price of 430 GBP per MWh would instead be required to break even using exclusively curtailment mitigation. By simultaneously performing the role of price arbitrage, payback was instead achieved in 2.64 years.
This analysis concluded ESS installations would disproportionately compete with hydro-power in the imbalance market. Just as cannibalisation remains a topic of interest for future energy expansions, so too would this competition (with hydro, as well as batteries and other ESSs such as hydrogen, ammonia, compressed air energy storage, etc.) also be of interest. Though storage technologies dispatchable, as price smoothing would be an expected consequence of increased competition for price arbitrage, this may affect the payback times of battery units. Individual units modelled in this study were of a smaller 1 MWh size, but at larger scale these effects, such as lowering the peak spot prices of electricity would be expected to become more pronounced.
In addition to further modelling the economic impact of increased ESS applications in the imbalance market, the environmental consequences of price smoothing would also be a topic of future interest. If price smoothing reduced VRE price cannibalisation, for example, then it may enable further VRE expansion. Depending on the emissions opportunity cost of charging and discharging the battery, the lower emissions intensity scheduling of nuclear, hydro (or other, technologies), may also be facilitated such that net emissions were reduced despite losses to battery inefficiency. This paper, however, focuses on ESS scheduling and its role as a marginal seller, rather than broader changes in the expansion of or scheduling of other technologies. The environmental impacts of price arbitrage (positive or negative) are not assessed by this study, with only curtailment reduction being considered. As such the quantification of these questions in a market data framework remain of continued interest as generation and market changes continue.
Given the framework of this study permits both price arbitrage and curtailment reduction, ESSs may only be placed on site, and may only be charged from their local sites to minimise potential transmission constraint problems caused by these systems, particularly with respect to curtailment concerns. Studies with access to grid constraint data may consider placement options which are not co-located, or which charge externally. While this paper investigated lithium-ion batteries, given their projected dominance in existing literature, other existing and future technologies would still serve as a possible direction of expanded inquiry.
Finally, while this paper uses a uniquely extensive volume of data in its investigation of British wind energy storage, further detail may continue to be derived from new or more extensive data in future years. These same questions could also be examined with regards to other curtailed generation technologies such as solar, or even dispatchables such as gas where applicable.
• All ESSs achieved payback, primarily due to price arbitrage, which comprises the vast majority of ESS operations, as opposed to curtailment reduction.
• English/Welsh offshore wind farm attachments achieved quicker paybacks, but lower curtailment reductions relative to Scottish wind farm battery attachments.
• At 3 of the 47 sites, curtailment reduction was significant enough for a net increase in energy exports to occur using an economic return optimising model framework.
• Scheduled ESS discharges to the grid disproportionately occurred during periods of time where hydro-power was the marginal seller. This resulted in lower average emissions displacement intensities than the average intensity of the imbalance market (though still much higher than the overall market).
• Due to these similar emissions intensities, adjusted emissions reductions resulting from mitigated curtailment closely tracked curtailment reductions themselves. A distinction therefore exists between farms with quicker payback, and those with greater emissions reduction due to lowering curtailment levels.
Policy makers in Britain and in countries with comparable energy systems should therefore be advised of the following. Price-exposed batteries are incentivised by market forces to complement the expansion of renewables and compete in the disproportionately fossil fuel dominated imbalance market. As a result, however, competition amongst storage technologies would also be expected. Finally, present returns make these projects financially viable.
BESS | Battery energy storage system |
BMRS | Balancing mechanism reporting service |
C | C-rate |
CREATE | Campus for research excellence and technological enterprise |
DOD | Depth of discharge |
DUKES | Digest of UK energy statistics |
EIC | Energy identification code |
EPSRC | Engineering and physical sciences research council |
ESO | Electricity system operator |
ESS | Energy storage system |
ETH | Eidgenössische technische hochschule |
EV | Electric vehicle |
GBP | Great british pound(s) |
IEA | International energy agency |
MIT | Massachusetts institute of technology |
MW | Megawatt(s) |
RE | Renewable energy |
RRN | Renewable energy |
SOC | State Of charge |
UK | United Kingdom |
VRE | Variable renewable energy |
Footnote |
† Electronic supplementary information (ESI) available. See DOI: https://doi.org/10.1039/d3ee01355c |
This journal is © The Royal Society of Chemistry 2023 |