Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage Systems

The increasing integration of renewable energy sources necessitates efficient energy storage solutions, with large-scale battery energy storage systems (BESS) playing a key role in grid stabilization and time-shifting of energy. This study presents a multi-level simulation framework for optimizing B...

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Main Authors: Leon Tadayon, Georg Frey
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Energies
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Online Access:https://www.mdpi.com/1996-1073/18/11/2708
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author Leon Tadayon
Georg Frey
author_facet Leon Tadayon
Georg Frey
author_sort Leon Tadayon
collection DOAJ
description The increasing integration of renewable energy sources necessitates efficient energy storage solutions, with large-scale battery energy storage systems (BESS) playing a key role in grid stabilization and time-shifting of energy. This study presents a multi-level simulation framework for optimizing BESS operation across multiple markets while incorporating degradation-aware dispatch strategies. The framework integrates a day-ahead (DA) dispatch level, an intraday (ID) dispatch level, and a high-resolution simulation level to accurately model the impact of operational strategies on state of charge and battery degradation. A case study of BESS operation in the German electricity market is conducted, where frequency containment reserve provision is combined with DA and ID trading. The simulated revenue is validated by a battery revenue index. The study also compares full equivalent cycle (FEC)-based and state-of-health-based degradation models and discusses their application to cost estimation in dispatch optimization. The results emphasize the advantage of using FEC-based degradation costs for dispatch decision-making. Future research will include price forecasting and expanded market participation strategies to further improve and stabilize the profitability of BESS in multi-market environments.
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spelling doaj-art-d8d0ff5669054aa2890315629fecfcd62025-08-20T03:46:49ZengMDPI AGEnergies1996-10732025-05-011811270810.3390/en18112708Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage SystemsLeon Tadayon0Georg Frey1Chair of Automation and Energy Systems, Saarland University, 66123 Saarbrücken, GermanyChair of Automation and Energy Systems, Saarland University, 66123 Saarbrücken, GermanyThe increasing integration of renewable energy sources necessitates efficient energy storage solutions, with large-scale battery energy storage systems (BESS) playing a key role in grid stabilization and time-shifting of energy. This study presents a multi-level simulation framework for optimizing BESS operation across multiple markets while incorporating degradation-aware dispatch strategies. The framework integrates a day-ahead (DA) dispatch level, an intraday (ID) dispatch level, and a high-resolution simulation level to accurately model the impact of operational strategies on state of charge and battery degradation. A case study of BESS operation in the German electricity market is conducted, where frequency containment reserve provision is combined with DA and ID trading. The simulated revenue is validated by a battery revenue index. The study also compares full equivalent cycle (FEC)-based and state-of-health-based degradation models and discusses their application to cost estimation in dispatch optimization. The results emphasize the advantage of using FEC-based degradation costs for dispatch decision-making. Future research will include price forecasting and expanded market participation strategies to further improve and stabilize the profitability of BESS in multi-market environments.https://www.mdpi.com/1996-1073/18/11/2708battery energy storage systemmulti-level simulation frameworkcross-market paricipationdegradation-aware operation
spellingShingle Leon Tadayon
Georg Frey
Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage Systems
Energies
battery energy storage system
multi-level simulation framework
cross-market paricipation
degradation-aware operation
title Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage Systems
title_full Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage Systems
title_fullStr Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage Systems
title_full_unstemmed Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage Systems
title_short Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage Systems
title_sort multi level simulation framework for degradation aware operation of a large scale battery energy storage systems
topic battery energy storage system
multi-level simulation framework
cross-market paricipation
degradation-aware operation
url https://www.mdpi.com/1996-1073/18/11/2708
work_keys_str_mv AT leontadayon multilevelsimulationframeworkfordegradationawareoperationofalargescalebatteryenergystoragesystems
AT georgfrey multilevelsimulationframeworkfordegradationawareoperationofalargescalebatteryenergystoragesystems