VPP Battery Clustering for Multi-Service Capacity Allocation
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Solution Overview
Problem
Current Virtual Power Plant (VPP) technology is inflexible and unfair to prosumers, as it limits battery storage devices to provide only a single grid service at a time, fails to optimize capacity usage, and does not adequately price opportunity costs, leading to suboptimal participation in electricity markets.
Innovation Solution
A management system that dynamically configures and manages clusters of distributed battery-based storage devices to provide multiple grid services simultaneously, optimizing capacity usage and assigning flexible fractions of battery capacity to both prosumers and grid operators, while considering geographic, contractual, and renewable energy production properties to maximize utility and remuneration.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a rigid fraction of BESS capacity is purchased from owners for a pre-agreed price, then the VPP can secure capacity for grid services, but the prosumer loses flexibility and opportunity to self-consume energy
Solution Approach 1:
The patent implements dynamic capacity allocation where the fraction of BESS capacity assigned to the VPP varies over time based on grid service requirements and prosumer self-consumption needs. The optimization module continuously adjusts capacity allocation between self-consumption and grid service provision, replacing the static pre-agreed fraction with a dynamic, optimized allocation that adapts to changing conditions.
Solution Approach 2:
The system changes the parameter of capacity allocation from a fixed pre-agreed fraction to a dynamically optimized fraction determined by an optimization module. This module considers multiple parameters including self-consumption demand, grid service requirements, and remuneration opportunities to determine the optimal capacity allocation at each time step, thereby resolving the contradiction between reliability and flexibility.
2Power
If BESS devices are grouped into large aggregations with strict time and power constraints, then the VPP can meet grid service requirements, but individual devices cannot participate in multiple services or be selectively assigned to specific jobs
Solution Approach 1:
The patent segments the VPP capacity into multiple independent clusters, each dedicated to a specific grid service type (e.g., frequency containment reserve, automatic frequency restoration reserve, manual frequency restoration reserve). This segmentation allows individual BESS devices to be selectively assigned to different service clusters based on their characteristics and the specific service requirements, enabling participation in multiple services without compromising aggregate power delivery capability.
Solution Approach 2:
The optimization module implements a universal allocation framework that can assign the same BESS capacity to multiple different grid services simultaneously, optimizing participation across various service types. Each service has its own cluster, but the system can dynamically allocate capacity across clusters based on real-time opportunities, making the BESS fleet universally applicable to multiple service functions.
3Device complexity
If the VPP uses only a small fraction of BESS capacity through pre-agreed contracts, then capacity partition is simplified, but opportunity costs are not adequately priced and prosumer remuneration is suboptimal
Solution Approach 1:
The system implements a feedback mechanism where the optimization module continuously monitors grid service remuneration opportunities, self-consumption values, and BESS state to dynamically adjust capacity allocation. This feedback loop ensures that opportunity costs are adequately priced by comparing the value of self-consumption against grid service remuneration, and the system responds by optimizing the fraction of capacity allocated to each use, thereby maximizing prosumer remuneration while maintaining manageable complexity through automated decision-making.
Data Source
AI summary
The present invention refers to a system for managing distributed energy storage systems like a Virtual Power Plant (VPP). The system is adapted to process grid services requests from grid operators and/or market agents, and to dynamically set clusters of energy storage devices based on properties of the energy storage devices, and selecting those energy storage devices that are suitable to fulfill grid service operation requirements of at least one grid service. The system is further adapted to allow injection or absorption of energy to or from the grid during a time period, through at least one cluster of selected energy storage devices, to provide at least one grid service demanded by grid operators and/or market agents. The system of the invention enables the participation of a battery energy storage system in a plurality of grid services at the same time, so as to optimize the use of prosumers battery storage capacity, and enlarge prosumers participation in the electricity market.