Energy storage behind-the-meter with renewable generators: Techno-economic value of optimal imbalance management

There is a growing body of evidence that energy storage systems can provide significant flexibility to the electricity grid. This study introduces a system comprising an energy storage unit connected behind-the-meter with a large-scale wind power generator. The associated constraints are derived from storage device and wind power parameters, and then implemented to carry out energy arbitrage, manage imbalance of the wind farm, and help the grid during times of peak demand in the winter. A suitable representation of the system components enables the straightforward implementation of energy storage dynamics in a purely linear rolling-planning optimisation framework. A case study is constructed for the simultaneous optimal allocation of energy to maximise profits, followed by a detailed financial investment analysis. It is demonstrated that a business case can be constituted only for the proposed energy imbalance management strategy, which also extends the cyclic lifetime of the storage unit.