Energy storage bidding summary

Can battery energy storage be a joint bidding strategy?

To ensure the flexible operations of the power system, it is necessary to explore the potential flexibility regulation capacity and further promote the accommodation of the renewable energy. Under this context, a joint bidding strategy for battery energy storage in the regulation and energy electricity market is proposed in this paper.

How did bid cost recovery affect batteries in 2022?

Bid cost recovery payments for batteries increased significantly in 2022. In 2022 battery resources received 10 percent of all bid cost recovery, while accounting for about 5 percent of capacity in the CAISO market. These payments represent about 7.6 percent of net market revenue for batteries.

Why do batteries use energy bids?

In general, batteries use their energy bids to signal a high willingness to discharge during peak net load hours, and a low willingness to discharge when prices are lower in the afternoon.

What is a competitive energy bid?

Competitive energy bids on the charging portion of the bid curve should reflect the opportunity cost of forgoing charging at a given point in time. If a resource submits very low charging bids, the resource will be less likely to receive a charging award, and the low bid reflects a low cost of forgoing charging.

Are bid cost recovery payments real-time?

Department of Market Monitoring Californ– ia ISO June 2024 2023 Special Report on Battery Storage 24 Almost all bid cost recovery paid to batteries is in the real-time market. The main limitations on battery dispatch that lead to real-time bid cost recovery payments stem from state-of-charge constraints that limit charging and discharging.

Why do co-located facilities have separate Energy bid curves?

Since they are modeled as separate resources , co-located facilities submit separate energy bid curves, have separate metering arrangements, submit separate outages, receive separate dispatch instructions, and may be operated by different entities.