A renewable energy facility in Alberta was facing challenges with grid constraints and limited transmission capacity, making it difficult to maximize the value of its battery storage system. Arcus Power provided a solution that improved revenue generation while ensuring better grid participation.
Challenges
Transmission Line Constraints
The facility couldn’t always discharge stored energy back to the grid due to transmission limitations.
Charging Strategy
To reduce costs, the facility aimed to prioritize charging from on-site solar rather than pulling from the grid.
Approach
Arcus Power developed a strategy focused on two key areas:
Participation in Ancillary Services (AS):
By tapping into fast-response grid services, the facility could support system reliability while generating additional revenue. Arcus Power’s forecasting tools helped optimize when and how the battery participated in these markets.
Price Arbitrage
Using Arcus Power’s Pwrstream price forecasting, the facility adjusted its charge and discharge cycles to take advantage of price fluctuations—charging when prices were low and selling power when prices peaked.
Additional Value Delivered
Pwrstream Tools for Enhanced Optimization
Arcus Power’s Pwrstream tools provided tailored solutions to address the operational constraints:
Price Forecasting for Arbitrage
Pwrstream enabled precise scheduling by forecasting low-price hours, allowing the battery to charge either from the grid or solar farm. This capability ensured energy could be sold back during peak-priced hours, aligning directly with the facility’s goal to optimize profitability within grid constraints.
Coincident Peak Avoidance
By predicting peak demand periods, the Pwrstream tool allowed the facility to charge the battery ahead of time and discharge during coincident peak hours. This strategy effectively minimized coincident peak charges, addressing the challenge of limited transmission line capacity.
Demand Response Participation
With Pwrstream’s real-time analytics, the battery’s rapid discharge capability was harnessed to participate in fast-response ancillary services like spinning reserves. This ensured the facility earned premium revenues while maintaining flexibility in its operations.
Proposed Strategy
To maximize revenue, Arcus Power recommended a hybrid approach:
Combine Arbitrage and Ancillary Services Participation
Engage in grid services that offer strong revenue potential, ensuring the facility is available to support system stability when needed. During periods of high demand, the facility can provide rapid response energy, earning premium rates while helping balance the grid.
When not participating in these services, adjust operations based on market conditions—charging when prices are low and discharging when demand and prices rise.
This approach allows the facility to maximize value while adapting to market fluctuations.
Results and Impact
Increase Revenue
By participating in ancillary services and leveraging price arbitrage, the facility unlocked new revenue streams.
Optimize Battery Usage
The facility utilized the battery efficiently, reducing dependency on the grid and aligning operations with market opportunities.
Improve Forecasting and Decision-Making
Arcus’ forecasting tools enabled precise energy management strategies, ensuring optimal charging and discharging times.
Conclusion
By leveraging advanced forecasting and strategic market participation, Arcus Power enabled the facility to navigate operational challenges and improve revenue generation. This highlights the impact of data-driven energy management in optimizing the value of solar and storage assets.
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