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Overview

This section examines how Battery Energy Storage Systems (BESS) affects the electricity market by actively reshaping demand and optimizing the generation mix.

The Impact of BESS on the System​

The integration of BESS significantly alters the dynamics of the DLC and the LDC by actively levelizing the demand. BESS disrupt the traditional screening curve by acting as both a "synthetic load" and a "peaking generator."

  • Peak Shaving: BESS can replace expensive Peaking Stations. By charging during low-cost baseload periods and discharging during peaks, the system avoids the high variable costs of diesel or open-cycle gas.
  • Capacity Firming: BESS allows intermittent renewables (Solar/Wind) to behave more like "Intermediate" or even "Baseload" stations by smoothing out volatility.
  • Arbitrage: In a deregulated market, BESS captures the price delta between the bottom and top of the LDC, effectively "flattening" the curve.

With BESS vs. Without BESS​

Without BESS​

Without Bess
  • Heavy solar generation causes prices and net demand to become highly depressed during the midday period.
  • As the sun sets and the evening peak begins, the system must rely heavily on expensive peaking stations to satisfy the sudden spike in net demand.

With BESS​

chargedischarge
  • Charging: The battery operates as a load, charging during the daytime periods when demand is low and solar energy depresses the market price.
  • Discharging: The battery generates power during the evening peak, taking advantage of the high market prices.
  • LDC Reshaping: BESS effectively reduces the amount of energy that needs to be produced by expensive peaking stations like diesel.