fossil-fuelled, CO2-emitting peak plants. Using its patented and proprietary cloud solution,

REstore is able to optimise the VPP and co-ordinate the response across all sites. In its first months of operation, the VPP delivered 100% of required power for 99.6% of the time.

Including the battery in a larger flexibility portfolio results in a revenue stream which is up to 1.4 times higher compared to the base case where the battery is monetised on a standalone basis. Complementary technical characteristics of the battery and industrial loads are blended, enabling slower industrial loads to participate in the market, and allowing the battery to remain at a state of charge of 50% or above, while rapidly cycling up and down, increasing its lifetime. Also, value is added by stacking revenues from the provision of primary reserve as well as day-ahead and intraday wholesale markets.

At the operational level, the deployment of a fully automated solution respects the boundary conditions of industrial processes and reduces the impact on the industrial sites’ operations. REstore’s solution also optimises reporting of the metered demand before, during, and after dispatch, which simplifies settlement processes.

The penetration of DER requires the ability to pool assets, prequalification requirements conducive to the deployment of batteries, and a technology-neutral ancillary service product design, as well as clear and transparent baselining and settlement methodologies.

REstore views the following aspects of product design as helpful to encouraging the participation of DER in all markets on an equal footing with generation. These have the added benefits of improving market liquidity, transparency and social welfare, as well as enabling a clean, secure and cost-efficient energy system:

Frequency containment reserve (FCR), automatic frequency restoration reserve (aFRR) and manual frequency restoration reserve (mFRR): increase the frequency of tenders to a daily basis instead of a weekly basis.

FCR and aFRR: procure both products separately.

aFRR: reduce the minimum bid size, currently set at a still comparably large value of 25 MW, and extend participation to assets connected beyond the medium voltage level.

aFRR and wholesale markets: extend transfer of energy to aFRR and day-ahead/intraday markets in a timely manner.

mFRR: review submeter requirements to avoid overly strict accuracy requirements.

References

AEMO (2018), Initial Operation of the Hornsdale Power Reserve Battery Energy Storage System, Australian Energy Market Operator, Melbourne, www.aemo.com.au/-/media/Files/Media_Centre/2018/Initial- operation-of-the-Hornsdale-Power-Reserve.pdf.

AEMO (2014), Independent Planning Review: Attachment A – TransGrid Project Assessment Reports, AEMO, Melbourne.

BSRIA (2018), World Renewables: Heat Pump Market, Building Services Research and Information Association, Bracknell.

REserviceS (2013a), “Capabilities and costs for ancillary services provision by wind power plants”, deliverable D3.1, www.reservices-project.eu/publications-results/.

REserviceS (2013b), “Ancillary services by solar PV – capabilities and costs”, deliverable D4.1, www.reservices-project.eu/publications-results/.

Regelleistung (2015), Anforderungen an die Speicherkapazität bei Batterien für die Primärregelleistung, www.regelleistung.net/ext/static/prequalification.

Stephan, A. et al. (2016), “Limiting the public cost of stationary battery deployment by combining applications”, Nature Energy, Vol. 1 (June), Article No. 16079, http://doi.org/10.1038/nenergy.2016.79.

US DOE (20124), Dynamic Line Rating Systems for Transmission Lines, United States Department of Energy, Washington, DC. www.smartgrid.gov/document/dynamic_line_rating_systems_transmission_lines.html.

Zerrahn, A. and W. Schill (2018), “Long-run power storage requirements for high shares of renewables: review and a new model”, Renewable and Sustainable Energy Reviews, http://wolfpeterschill.de/wpcontent/uploads/Zerrahn_Schill_2018_RSER.pdf.