Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations

Recent European regulations promote distributed energy resources as alternatives to centralized generation. This study compares utility-scale and distributed photovoltaic (PV) systems coupled with Battery Energy-Storage Systems (BESSs) in the Italian electricity market, analyzing different battery s...

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Main Authors: Andrea Scrocca, Roberto Pisani, Diego Andreotti, Giuliano Rancilio, Maurizio Delfanti, Filippo Bovera
Format: Article
Language:English
Published: MDPI AG 2025-07-01
Series:Energies
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Online Access:https://www.mdpi.com/1996-1073/18/14/3791
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author Andrea Scrocca
Roberto Pisani
Diego Andreotti
Giuliano Rancilio
Maurizio Delfanti
Filippo Bovera
author_facet Andrea Scrocca
Roberto Pisani
Diego Andreotti
Giuliano Rancilio
Maurizio Delfanti
Filippo Bovera
author_sort Andrea Scrocca
collection DOAJ
description Recent European regulations promote distributed energy resources as alternatives to centralized generation. This study compares utility-scale and distributed photovoltaic (PV) systems coupled with Battery Energy-Storage Systems (BESSs) in the Italian electricity market, analyzing different battery sizes. A multistage stochastic mixed-integer linear programming model, using Monte Carlo PV production scenarios, optimizes day-ahead and intra-day market offers while incorporating PV forecast updates. In real time, battery flexibility reduces imbalances. Here we show that, to ensure dispatchability—defined as keeping annual imbalances below 5% of PV output—a 1 MW PV system requires 220 kWh of storage for utility-scale and 50 kWh for distributed systems, increasing the levelized cost of electricity by +13.1% and +1.94%, respectively. Net present value is negative for BESSs performing imbalance netting only. Therefore, a multiple service strategy, including imbalance netting and energy arbitrage, is introduced. Performing arbitrage while keeping dispatchability reaches an economic optimum with a 1.7 MWh BESS for utility-scale systems and 1.1 MWh BESS for distributed systems. These results show lower PV firming costs than previous studies, and highlight that under a multiple-service strategy, better economic outcomes are obtained with larger storage capacities.
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spelling doaj-art-45552c832ece46ca9470afc8d61821112025-08-20T03:08:05ZengMDPI AGEnergies1996-10732025-07-011814379110.3390/en18143791Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed ConfigurationsAndrea Scrocca0Roberto Pisani1Diego Andreotti2Giuliano Rancilio3Maurizio Delfanti4Filippo Bovera5Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, ItalyDepartment of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, ItalyDepartment of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, ItalyDepartment of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, ItalyDepartment of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, ItalyDepartment of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, ItalyRecent European regulations promote distributed energy resources as alternatives to centralized generation. This study compares utility-scale and distributed photovoltaic (PV) systems coupled with Battery Energy-Storage Systems (BESSs) in the Italian electricity market, analyzing different battery sizes. A multistage stochastic mixed-integer linear programming model, using Monte Carlo PV production scenarios, optimizes day-ahead and intra-day market offers while incorporating PV forecast updates. In real time, battery flexibility reduces imbalances. Here we show that, to ensure dispatchability—defined as keeping annual imbalances below 5% of PV output—a 1 MW PV system requires 220 kWh of storage for utility-scale and 50 kWh for distributed systems, increasing the levelized cost of electricity by +13.1% and +1.94%, respectively. Net present value is negative for BESSs performing imbalance netting only. Therefore, a multiple service strategy, including imbalance netting and energy arbitrage, is introduced. Performing arbitrage while keeping dispatchability reaches an economic optimum with a 1.7 MWh BESS for utility-scale systems and 1.1 MWh BESS for distributed systems. These results show lower PV firming costs than previous studies, and highlight that under a multiple-service strategy, better economic outcomes are obtained with larger storage capacities.https://www.mdpi.com/1996-1073/18/14/3791PV firmingBESS sizingpower imbalancestochastic optimizationPV scenario generationdistributed energy resources
spellingShingle Andrea Scrocca
Roberto Pisani
Diego Andreotti
Giuliano Rancilio
Maurizio Delfanti
Filippo Bovera
Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations
Energies
PV firming
BESS sizing
power imbalance
stochastic optimization
PV scenario generation
distributed energy resources
title Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations
title_full Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations
title_fullStr Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations
title_full_unstemmed Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations
title_short Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations
title_sort optimal spot market participation of pv bess impact of bess sizing in utility scale and distributed configurations
topic PV firming
BESS sizing
power imbalance
stochastic optimization
PV scenario generation
distributed energy resources
url https://www.mdpi.com/1996-1073/18/14/3791
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