Dispatch optimization and battery siting are interdependent components in energy storage project design. Here’s how they complement each other:
Spatial and Temporal Synergy
Battery siting determines the physical location and technical specifications (capacity, power ratings), while dispatch optimization configures operational strategies across time horizons. Optimal siting ensures grid constraints and local energy profiles align with storage capabilities, whereas dispatch algorithms maximize economic returns within those physical parameters.
Value Stacking
Dispatch models like REopt® and RESTORE analyze multiple revenue streams (arbitrage, grid services, capacity payments) that depend on a battery’s location. For example, a battery sited near a solar farm may prioritize solar smoothing, while urban installations might optimize demand-charge reduction. The siting decision informs which value streams the dispatch model prioritizes.
Risk Mitigation
- Siting risks (grid congestion, policy changes) are mitigated by dispatch models that simulate worst-case price volatility or regulatory shifts.
- Operational risks (degradation, warranty limits) are incorporated into dispatch algorithms through constraints on charging cycles or state-of-charge boundaries.
Investment Confidence
Tools like Linny-R combine long-term siting decisions (asset mix, storage sizing) with short-term dispatch strategies (hourly load shifting). This dual analysis helps investors evaluate whether a proposed site can sustain 20+ years of optimized revenue.
Example Integration
A vanadium redox flow battery (VRFB) sited for grid stability might use REopt® to balance frequency regulation with energy arbitrage, while a lithium-ion system in a commercial building adopts RESTORE’s 5-minute intervals to shave peak demand charges.
By co-optimizing siting and dispatch, projects achieve lower levelized storage costs while maintaining grid service reliability.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-dispatch-optimization-complement-battery-siting-in-energy-storage-projects/
