The dispatch strategy for battery energy storage systems (BESS) differs between 1.5-hour and 4-hour battery solutions primarily in terms of flexibility, usage, and economic optimization. Here are the key differences:
Dispatch Strategy Differences
1.5-Hour Battery Solutions
- High Power, Short Duration: These batteries are optimized for high power output over short durations, making them suitable for:
- Peak Shaving: Reducing peak demand to avoid high electricity costs.
- Frequency Regulation: Quick response to grid frequency fluctuations.
- Limited Energy Arbitrage: Since they have less capacity, they might not be as effective for energy arbitrage (buying energy at off-peak hours and selling at peak hours).
4-Hour Battery Solutions
- Lower Power, Longer Duration: These batteries are designed for longer discharge cycles, which allows them to:
- Optimize Energy Arbitrage: Better suited for energy arbitrage because they can store and supply more energy over longer periods.
- Provide Backup Power: More suitable for backup power during extended outages.
- Stabilize Renewable Outputs: Can help smooth out variability in renewable energy sources over longer periods.
Economic Considerations
- Revenue Maximization: With longer duration batteries, there’s a potential for more revenue through energy arbitrage and other extended use cases like grid stabilization and backup power.
- Market Opportunities: In markets like Italy, where there’s a growing demand for grid services, longer duration batteries can access a broader range of revenue stacking opportunities.
In summary, the dispatch strategy for shorter duration batteries focuses on high-power applications and quick response services, while longer duration batteries are more suited for extended energy provision and broader market opportunities.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-dispatch-strategy-differ-between-1-5-hour-and-4-hour-battery-solutions/
