The REopt model incorporates both local grid support values and wholesale market values by optimizing energy systems to maximize their value. Here’s how it achieves this integration:
- Local Grid Support Value:
- Value Streams Identification: REopt identifies and monetizes value streams derived from utility-scale energy storage systems such as vanadium redox flow batteries (VRFB) for local grid support use cases. These include voltage regulation, capacity firming, and peak shaving.
- Performance Modeling: The model accurately accounts for losses and auxiliary power consumption associated with energy storage systems. This ensures a precise assessment of cost-optimal dispatch strategies.
- Wholesale Market Values:
- Market Participation: REopt optimizes participation in wholesale markets, such as energy and ancillary services markets. It evaluates the economic benefits of selling or buying energy in these markets, helping users to make informed decisions on when to dispatch stored energy.
- Day-Ahead Dispatch: The model uses day-ahead price signals from entities like the California Independent System Operator (CAISO) to determine optimal dispatch strategies. This ensures that energy storage systems are dispatched to maximize revenue in wholesale markets while also supporting local grid needs.
By integrating these values, REopt provides a comprehensive approach to optimizing energy system operations, balancing local grid support needs with opportunities in wholesale markets.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-reopt-model-incorporate-local-grid-support-value-and-wholesale-market-values/
