Overview
This section introduces what Battery Energy Storage Systems (BESS) is and the role it plays in the electricity market.
What is BESS?
A Battery Energy Storage System (BESS) is a technology that captures electrical energy and stores it for later use. What makes BESS distinctive in power system modeling is its multi-directional nature. Unlike traditional power plants, a BESS functions as both a load (when charging) and a generator (when discharging).
Why simulate BESS?
Simulating BESS is crucial for understanding its role in modern grid decarbonization. By modeling a BESS, you can analyze its core function: charging during periods when demand and prices are low, and discharging when demand and prices are high.
Key Concept: In a market-based simulation, BESS acts to capitalize on price spreads, effectively acting as an energy arbitrage mechanism between off-peak and on-peak periods.