batteries

Article
Fundamentals of Using Battery Energy Storage
Systems to Provide Primary Control Reserves
in Germany
Alexander Zeh 1, *, , Marcus Mller 2, *, , Maik Naumann 2 , Holger C. Hesse 2 , Andreas Jossen 2
and Rolf Witzmann 1
1 Associate Professorship Power Transmission Systems, Technical University of Munich (TUM), Arcisstr. 21,
Munich 80333, Germany; rolf.witzmann@tum.de
2 Institute for Electrical Energy Storage Technology, Technical University of Munich (TUM), Arcisstr. 21,
Munich 80333, Germany; maik.naumann@tum.de (M.N.); holger.hesse@tum.de (H.C.H.);
andreas.jossen@tum.de (A.J.)
* Correspondence: alexander.zeh@tum.de (A.Z.); marcus.mueller@tum.de (M.M.);
Tel.: +49-89-289-25090 (A.Z.); +49-89-289-26973 (M.M.)
These authors contributed equally to this work as co-first authors.

Academic Editor: Joeri Van Mierlo

Received: 28 April 2016; Accepted: 30 August 2016; Published: 13 September 2016

Abstract: The application of stationary battery storage systems to German electrical grids can help
with various storage services. This application requires controlling the charge and discharge power
of such a system. For example, photovoltaic (PV) home storage, uninterruptible power supply,
and storage systems for providing ancillary services such as primary control reserves (PCRs) represent
battery applications with positive profitability. Because PCRs are essential for stabilizing grid
frequency and maintaining a robust electrical grid, German transmission system operators (TSOs)
released strict regulations in August 2015 for providing PCRs with battery storage systems as part of
regulating the International Grid Control Cooperation (IGCC) region in Europe. These regulations
focused on the permissible state of charge (SoC) of the battery during nominal and extreme conditions.
The concomitant increased capacity demand oversizing may result in a significant profitability
reduction, which can be attenuated only by using an optimal parameterization of the control algorithm
for energy management of the storage systems. In this paper, the sizing optimization is achieved and a
recommendation for a control algorithm that includes the appropriate parameters for the requirements
in the German market is given. Furthermore, the storage cost is estimated, including battery aging
simulations for different aging parameter sets to allow for a realistic profitability calculation.

Keywords: energy storage; lithium-ion; stationary battery storage; control power; primary
control reserve

1. Introduction
Battery energy storage systems (BESS) and their integration into the electricity grid have become
increasingly important, especially in the field of renewable energy. Nevertheless, battery storage
systems reach market maturity slowly because of the lack of a corresponding legal framework and the
high costs of the systems, which come from the expense of lithium-ion cells. Although photovoltaic
(PV) home-storage systems have a firm legal framework, high prices prevent them from being more
widely adopted [1]. Large-scale community storage systems at the distribution grid level may be
more attractive economically because of the possibilities of combining several tasks or business
models in one storage system; however, in Germany, such multi-tasking storage systems are faced
by an inappropriate legal framework [2,3]. Grid energy storage systems that can reduce high loads

Batteries 2016, 2, 29; doi:10.3390/batteries2030029 www.mdpi.com/journal/batteries

Batteries 2016, 2, 29 2 of 20
Batteries 2016, 2, 29 2 of 21

are faced by an inappropriate legal framework [2,3]. Grid energy storage systems that can reduce
highvoltages
and loads and voltages
resulting fromresulting from growing
growing amounts amounts of
of decentralized decentralized
renewable energyrenewable
generation energy
do not
generationan
constitute doeconomically
not constituteviable
an economically
alternative viable alternative
for grid for grid
reinforcement reinforcement
or innovative gridorutilities
innovative
and
grid utilities and have not reached market maturity [4]. Within the past few years, large-scale
have not reached market maturity [4]. Within the past few years, large-scale storage systems that storage
systems athat
provide provide
primary a primary
control control
reserve (PCR)reserve
have (PCR) have represented
represented a growing
a growing business business
model model
(Figure 1).
(Figure
The 1). The
growing growingofdiffusion
diffusion stationary of battery
stationary battery
storage storage
systems ledsystems led to price
to an annual an annual price
decline decline
of 18% for
of 18%storage
home for home storage
systems systems
in 2016 [5]. in
The 2016 [5]. The development
development costs
costs for larger PCRforstorage
larger PCR storage
are not are not
well-known
well-known
but should bebut should be similar.
similar.

Figure 1.
Figure 1. Growth
Growth of
of photovoltaic
photovoltaic (PV)
(PV) and
and primary
primary control
control reserve
reserve (PCR)
(PCR) storage
storage system
system markets
markets in
in
Germany [6].
Germany [6].

In contrast
In contrast to to PV
PV storage
storage systems,
systems, the the barrier
barrier to to PCR
PCR storage
storage systems
systems is is not
not the
the high
high investment
investment
costs but
costs but vague
vague regulations
regulations andand aa complicated
complicated prequalification
prequalification process process forfor storage
storage systems
systems providing
providing
PCRs. This situation changed in August 2015 when the German transmission systemsystem
PCRs. This situation changed in August 2015 when the German transmission operators operators
(TSOs)
(TSOs) published
published clear regulations
clear regulations for providing
for providing a PCR awith PCRbattery
with battery
storage storage
systems systems [7]. Because
[7]. Because the PCRthe
PCR system regulates the grid frequency and is essential for a stable electricity
system regulates the grid frequency and is essential for a stable electricity grid, these regulations grid, these regulations
are very
are very strict
strict and
and require
require aa battery
battery capacity
capacity provision.
provision. To To adhere
adhere to to these
these regulations
regulations and and still
still
achieve an
achieve an acceptable
acceptable level
level of
of profitability,
profitability, an an optimized
optimized control
control algorithm
algorithm for for the
the storage
storage system
system is is
necessary. Because various parameters can be changed within a permitted
necessary. Because various parameters can be changed within a permitted range for the optimization range for the optimization
and battery
and batteryoperation,
operation, thisthis paper
paper recommends
recommends a suitable
a suitable control control
algorithm algorithm
that includesthat theincludes
optimized the
optimized parameterization.
parameterization. Furthermore, Furthermore,
a profitabilitya profitability
calculation calculation
that includes that
anincludes
extensive anaging
extensive aging
evaluation
evaluation was performed for lithium-iron cells using lithium iron phosphate
was performed for lithium-iron cells using lithium iron phosphate (LFP) technology data estimations. (LFP) technology data
estimations.
LFP LFP istechnology
is a promising a promising fortechnology
PCRs because for PCRs because
of its high cycle ofstability.
its high cycle stability. The
The legitimacy legitimacy
of the German
of the German regulations given in [7] are being discussed by the EU
regulations given in [7] are being discussed by the EU commission, and this paper also considers commission, and this paper also
considers the probable changes contained in a news release from
the probable changes contained in a news release from the German Energy Storage Association [8]. the German Energy Storage
Association
This work is[8]. This work
separated intoisfour
separated
sections,into four sections,
starting with anstarting with an
introduction to introduction
the PCR market, to the PCR
with a
market, with a focus on Germany. Second, the legal framework for grid-coupled
focus on Germany. Second, the legal framework for grid-coupled BESS is given and is followed by an BESS is given and
is followed
overview of by an overview
schedule of schedule
transactions transactions
in the electricity in the electricity
markets. Finally, wemarkets.
present aFinally, we present
full overview of oura
full overview
methodical of our methodical
approach and finish withapproach and finish with
our conclusions about our
theconclusions
fundamentals aboutof the
usingfundamentals
BESS for PCR. of
using BESS for PCR.
2. Primary Control Reserve
2. Primary Control Reserve
When disparities between energy generation and consumption occur in the transmission grid
When
control disparities
zones, the grid between
frequencyenergy generation
can differ from itsand consumption
nominal value, which occurisin50theHztransmission
for the Uniongrid for
control
the zones, the of
Coordination grid
thefrequency
Transmission can differ from its (UCTE)
of Electricity nominalgrid. value, Forwhich is 50 Hzthe
that reason, forTSOs
the Union
who arefor
the Coordination
responsible for theofvarious
the Transmission
control zones of Electricity
must arrange (UCTE) grid. For that
for immediate reason, theofTSOs
procurement who are
the required
responsible
control power fortothe various
restore controlbalance
the power zones mustto thearrange for immediate
grid. Control power canprocurement
be procured of the required
through tender
control power
auctions and istodivided
restore the
intopower
three balance
differenttoproducts
the grid. Control
that differ power
in thecanexpediency
be procuredofthrough tender
their delivery.
auctions
PCRs mustandbeisactivated
divided within
into three
30 sdifferent
and are the products
fastestthat differcontrol
available in the expediency
power product of their
tradeddelivery.
in the
PCRs must
UCTE be activated
region. Secondary within
control 30 reserves
s and are(SCR)the fastest
can be available
activated control
within power
5 min product
and can traded
restorein the
UCTE region. Secondary control reserves (SCR) can be activated within 5 min and can restore the
Batteries 2016, 2, 29 3 of 21

grid frequency to29its nominal value. Tertiary control reserves (TCR) can be activated within
Batteries 2016, 2, 3 of15
20 min

and act as relief for SCRs. Because of their low monetary returns, TCRs are not attractive for battery
grid frequency to its nominal value. Tertiary control reserves (TCR) can be activated within 15 min
storage systems from a business standpoint [2]. Nevertheless, PCRs and SCRs offer much higher
and act as relief for SCRs. Because of their low monetary returns, TCRs are not attractive for battery
profitability, and PCRs are the most suitable because they offer continuous and autonomous provisions.
storage systems from a business standpoint [2]. Nevertheless, PCRs and SCRs offer much higher
The calculations
profitability, and and regulations for most
PCRs are the this are explained
suitable below.
because they offer continuous and autonomous
provisions. The calculations and regulations for this are explained below.
2.1. Trading Primary Control Reserves
2.1.Germany,
In Trading Primary
PCRs,Control Reserves
together with all other control reserve products, are traded on the online
platform, Inwww.regelleistung.net,
Germany, PCRs, together andwith
theyallcan be offered
other control by everyproducts,
reserve prequalified poweronsystem
are traded operator.
the online
platform,
The tender www.regelleistung.net,
period for PCRs is from Mondayand they tocan be offered
Friday, and theby bidding
every prequalified power system
closes on Tuesday the week
operator.
before. Only aThe tender
power period
price canfor PCRs
bid for is from which
PCRs, Mondaymeans
to Friday,
thatand
thethe biddingenergy
supplied closes on
isTuesday
not paid for.
the week before. Only a power price can bid for PCRs, which means that
The minimum offered power is 1 MW, and this can be increased in 1 MW steps. After the the supplied energy is bidding
not
paid for. The minimum offered power is 1 MW, and this can be increased in 1 MW steps. After the
is closed, the offers are sorted according to the merit order system until the estimated PCR demand
bidding is closed, the offers are sorted according to the merit order system until the estimated PCR
is covered.
demand is covered.
2.2. Provision Characteristics
2.2. Provision Characteristics
The activation call call
The activation is performed automatically
is performed automaticallyand
anddecentralized
decentralized at every participating
at every participatingfacility
facility by
a given power-frequency characteristic (P-f characteristic) throughout the entire tendering period of
by a given power-frequency characteristic (P-f characteristic) throughout the entire tendering period
one week
of one(Figure 2). 2).
week (Figure

50.20 Hz

50.01 Hz

1
P/Pn
-1

49.99 Hz

49.80 Hz

Figure 2. P-f characteristics for providing PCR.

Figure 2. P-f characteristics for providing PCR.

According to this characteristic, the control power is not supplied within the tolerated frequency
According to this characteristic, the control power is not supplied within the tolerated frequency
deviation band between 49.99 Hz and 50.01 Hz. For deviations between 10 mHz and 200 mHz, the
deviation
PCR band
powerbetween
provided49.99
mustHz and 50.01
linearly Hz. up
increase Forto
deviations between
100% of the 10 mHz
bid amount and
and 200 mHz,
remain there the
for PCR
power providedhigher
deviations mustthan
linearly increase
200 mHz up to
for both 100%and
positive of the bid amount
negative control and remain there for deviations
powers.
higher than 200 mHz for both positive and negative control powers.
2.3. Regulations Regarding the Battery State of Charge
2.3. Regulations Regarding the Battery State of Charge
The regulations given in [7] make an available energy reserve in the storage system compulsory
for the entire tendering
The regulations givenperiod, as longan
in [7] make as available
the grid frequency curve is in
energy reserve inthe
thenormal
storagerange. Thiscompulsory
system energy
reserve must be able to provide the entire amount of prequalified reserve power in both the
for the entire tendering period, as long as the grid frequency curve is in the normal range. This energy positive
andmust
reserve negative directions
be able for at the
to provide leastentire
30 min, which is
amount ofreferred to as the
prequalified 30-min
reserve criterion.
power Because
in both the this
positive
criterion could be rejected in the new European Network Code on Load Frequency Control &
and negative directions for at least 30-min, which is referred to as the 30-min criterion. Because this
Reserves (NC LFCR) in favor of a uniform 15-min criterion, all investigations in this paper are also
criterion could be rejected in the new European Network Code on Load Frequency Control & Reserves
carried out based on this alternative. In addition, this allows our results to be valid for different
(NC LFCR) in favor of a uniform 15-min criterion, all investigations in this paper are also carried
out based on this alternative. In addition, this allows our results to be valid for different regulatory
Batteries 2016, 2, 29 4 of 21

frameworks in countries that have implemented PCR markets and both criterions. The resulting
BatteriesSoC
permitted 2016, ranges,
2, 29 which must not depart from the normal frequency progression, are 4shown
of 20 in
Figure 3. The maximum and minimum SoC limits depend on the available energy content, Ebatt , of the
regulatory frameworks in countries that have implemented PCR markets and both criterions. The
battery system (capacity) and the prequalified PCR power, Ppq , as specified by Equations (1) and (2)
resulting permitted SoC ranges, which must not depart from the normal frequency progression, are
according to [7]. The values in the parentheses correspond to the 15-min criterion.
shown in Figure 3. The maximum and minimum SoC limits depend on the available energy content,
Ebatt, of the battery system (capacity) and the prequalified PCR power, Ppq, as specified by Equations
Ebatt 0.5 (0.25) h Ppq
(1) and (2) according to [7]. The SoC
values
maxin=the parentheses correspond to the 15-min criterion. (1)
Ebatt
batt 0.5(0.25) pq
max = (1)
batt) h Ppq
0.5 (0.25
SoCmin = (2)
0.5(0.25)
Ebatt pq
min = (2)
batt
According to [7], the frequency departs from the normal progression if at least one of the following
deviationsAccording
_f applies:
to [7], the frequency departs from the normal progression if at least one of the
following deviations _f applies:
_f > 50 mHz for more than 15 min;

_f >_f > 50 mHz for more than 15 min;
100 mHz for more than 5 min;
_f > 100 mHz for more than 5 min;
_f > 200 mHz at any time.
_f > 200 mHz at any time.
As soon as the
As soon asnormal progression
the normal is reached
progression following
is reached oneone
following of the specified
of the deviations,
specified thethe
deviations, battery
SoC must beSoC
battery restored torestored
must be the permitted range (Figure
to the permitted 3) within
range (Figure 2 h. 2 h.
3) within

Figure 3. Required state of charge (SoC) range for a battery energy storage system (BESS) based on
Figure 3. Required state of charge (SoC) range for a battery energy storage system (BESS) based on the
the 30-min or 15-min criterion.
30-min or 15-min criterion.
2.4. Degrees of Freedom
2.4. Degrees of Freedom
To keep the battery SoC within the permitted range, several degrees of freedom (DoFs), as
To keep in
defined the[9],
battery SoC within
are allowed by thethe permitted
German TSOs.range, several
The DoFs degrees
presume thatofthe
freedom (DoFs),
operators of theas defined
PCR
in [9],plants
are allowed by the German TSOs. The DoFs presume that the operators of the PCR plants
deviate slightly from the supply characteristics given in Figure 2; they are described in moredeviate
slightly from
detail the supply characteristics given in Figure 2; they are described in more detail below.
below.

2.4.1.2.4.1.
Overfulfillment
Overfulfillment
The control
The control power
power demand
demand indicatedby
indicated bythe
the P-f characteristic
characteristiccan be be
can increased up to
increased up20% at anyat any
to 20%
time to modify the
time to modify the SoC. SoC.

2.4.2.2.4.2.
DeadDead Band
Band
The control power demand indicated by the P-f characteristic can also be provided within the
The control power demand indicated by the P-f characteristic can also be provided within the
tolerated deviation range of 10 mHz if the SoC needs to be adjusted.
tolerated deviation range of 10 mHz if the SoC needs to be adjusted.
Batteries 2016, 2, 29 5 of 21

2.4.3. Provision Rate

The control power demand indicated by the P-f characteristic must be provided within 30 s or
less. Therefore, the gradient of the provided PCR power can be adjusted within certain boundaries in
order to influence the charging or discharging speed as appropriate for the current SoC.

2.4.4. Scheduled Transactions

The most important way to reach the desired SoC is by trading energy on the electricity market.
By selling or buying energy on the European Energy Exchange (EPEX), the SoC can be decreased
or increased as required while simultaneously providing the PCR power, but to ensure proper
measurements of both power flows, they must be energetically separated.

3. Legal Framework for Grid-Coupled Energy-Storage Systems

3.1. Electricity Costs

Energy consumers in Germany pay fees for grid use (the grid fee, specified by the German Energy
Economy Law (EnWG)) and to fund renewable energies (the Renewable Energy Act (EEG) reallocation
fee, specified by the German law EEG 2014), in addition to the price for generating and marketing the
power. Such fees also apply to buying energy on the EPEX. Approximately 2% of the overall electricity
price goes directly to the grid fee in the form of various taxes and fees. The grid fee alone amounts to
approximately 20% of the overall price, while the EEG reallocation fee, electricity tax, and concession
levy, which amount to approximately 20%, 8%, and 5%, respectively, are separate line items on the
electricity bill. With the German value-added tax (VAT) of 19%, the remaining 26% of the overall
electricity price covers generating and marketing energy.

3.2. Operating Costs for Primary Control Reserve Storage Systems

According to 118 of the EnWG, energy storage systems installed prior to August 2026 are free
of the grid fee, which includes all pegged taxes and fees. Furthermore, when feeding energy that
has already been paid for back into the grid, storage systems are free from the EEG reallocation fee
according to 60 of the EEG in Germany. Because both of these exceptions apply to PCR storage
systems, this reduces the amount that must be paid when buying energy on the EPEX (Table 1).
In general, charging the storage to maintain adequate SoC and provide PCRs alone is free from
any of the fees or taxes named in Table 1.

Table 1. Comparison of electricity overhead fees effective in Germany for end consumers and PCR
usage, respectively. EEG: Renewable Energy Act; and VAT: value-added tax.

Fees and Taxes for Energy Consumption Normal Case PCR Storage
Electricity tax Yes Yes
Concession levy Yes Yes
EEG reallocation fee Yes No
Grid fee Yes No
Remaining pegged fees Yes Yes
Costs for generation and marketing Yes Yes
VAT Yes Yes

4. Scheduled Transactions on the Electricity Market

The EPEX offers products on the Power Spot Market and the Power Derivatives Market. The Spot
Market provides opportunities for short-term transactions suitable for PCR storage systems in
accordance with Section 2.3. In particular, the continuous Intraday Market, which is part of the
Spot Market, is required to adjust the SoC of PCR storage systems, and quarter-hour, full-hour, or block
Batteries 2016, 2, 29 6 of 21

contracts can be traded up to 30 min prior to delivery. The minimum volume increment is 100 kW and
can be increased in 100 kW steps. Trades can be made only for the full quarter hour or hour. For the
setup of the methodical approach, we neglected market entry barriers such as entrance and operation
fees; however, we did include taxes and regulatory costs.

5. Methodical Approach

5.1. Battery Storage-System Model

The PCR BESS is assumed to be based on lithium ion technology, and the aging behavior
of the technology is further investigated in Section 7.2. The efficiency of the entire BESS is set at
90% for charging and discharging processes, mainly because of the power electronics and auxiliary
systems measured in the Energy Neighbor, a BESS built by the research project, EEBatt. Because of
constant operation with negligible idle times, the overall self-discharge of the BESS is ignored for the
following investigations.
Because the SoC is always changing when PCRs are provided, and there is no need to store energy
for a certain amount of time, self-discharging is ignored in the following investigations.

5.2. Frequency Data

The grid frequency data from 2012, 2013 and 2014 form the simulation basis for the investigations
in this paper. The datasets from 2013 and 2014 were provided by the German TSO 50 Hertz website
and were partially inconsistent, and the data from 2012 were based on redundant measurements and
were accurate. All inconsistent values in the datasets of 2013 (1,085,550 s worth of values) and 2014
(105,675 s worth of values) were replaced using the nominal frequency of 50 Hz. All three datasets
were compared for their deviations from the nominal frequency to determine the worst-case dataset
that was suitable for parameterizing the PCR storage. With a relative root-mean-square error (rRMSE)
of 0.044%, the 2012 data set showed the highest deviations. Because of its high deviations and accuracy,
it was used for parameterization.

5.3. P-f Characteristic

A proportional controller with a maximum and minimum output was the core element of the
control algorithm described in this paper. As shown in Figure 2, we implemented a dead band
for frequency deviations below 10 mHz. Considering a reasonable storage size, compliance with
the permitted SoC area shown in Figure 3 is not possible when the controllers function is strictly
followed. For this reason, the DoFs mentioned in Section 2.4 must be implemented to slightly modify
the proportional controller.

5.4. Implementation of the Degrees of Freedom

To correctly control every DoF, the PCR storage condition was divided into eight different states,
which resulted in four cases that are explained in Table 2. Based on the present case, every DoF is either
activated or deactivated to return the SoC to the value of SoCdes . The explicit strategy is to increase the
PCR power provided by activating the DoFs overfulfillment and dead band. This strategy advanced
the approach to the desired SoC (Cases 1 and 2) and/or delayed the demand progression of the PCR
power by activating the DoF provision rate to keep the provided PCR power at the high level required
to approach the SoCdes (Case 1) and to delay a further increase in the PCR power when this would
result in a divergence from the SoCdes . A summary is given in Table 3. For a simple and efficient DoF
implementation, every DoF provides its full potential when activated. The precise functionality of the
DoFs is given in the sections below. The scheduled transactions that are part of the DoFs are controlled
separately and explained further in Section 5.5.
Batteries 2016, 2, 29 7 of 21

Table 2. Four case system for controlling the degrees of freedom (DoFs).

SoC PCR Direction Demand Progression Case N

Increasing 2
Positive Decreasing 1
>SoCdes
Negative Increasing 3
Decreasing 4
Increasing 3
Positive Decreasing 4
<SoCdes
Negative Increasing 2
Decreasing 1

Table 3. Strategy for activating the DoFs.

Case N Overfulfillment Dead Band Provision Rate

1 Active Active Active
2 Active Active Inactive
3 Inactive Inactive Active
4 Inactive Inactive Inactive

5.4.1. Overfulfillment
When PCRs are activated, this DoF multiplies the output PPCR,c of the P-f controller shown in
Figure 2 by the maximum factor permitted in [9], which results in a modified controller output, PPCR,o ,
given in Equation (3):

PPCR,o = PPCR,c 1.2 (3)

5.4.2. Dead Band

The PCR power that results from the P-f controller modified by all active DoFs is also provided in
the permitted dead band within a frequency tolerance band of 10 mHz to +10 mHz when this DoF
is activated.

5.4.3. Provision Rate

This DoF serves as a rate limiter for the output power of the P-f controller, and, when activated,
it limits the provision gradient, PPCR , to a maximum value that depends on the prequalified PCR
power, Ppq , and is given in [9] in accordance with Equation (4):
Ppq
max (PPCR ) = (4)
30 s

5.5. Implementation of State of Charge Regulations

To satisfy the regulations given in [7], scheduled transactions on the EPEX intraday market to
regulate the battery SoC are required. A worst-case assumption is made for the normal frequency
progression (Section 2.3) to determine the minimum and maximum SoC limits; these activate a
corresponding intraday trade when violated. Because the time between the activation of a trade and
the actual delivery is at least 30 min, the assumed worst-case scenario must be included accordingly.
Therefore, the time period is divided into four areas:

Area 1 (00:0000:15): frequency deviation + 100 mHz;

Area 2 (00:1500:16): frequency deviation + 50 mHz;
Area 3 (00:1600:20): frequency deviation + 200 mHz;
Area 4 (00:2000:30): frequency deviation + 100 mHz.

Even though worse frequency deviations could occur in one direction, this segmentation is chosen
to achieve a reasonable balance between safety and reality. The resulting maximum SoC deviation,
Batteries 2016, 2, 29 8 of 21

W, prior to the intervention of a scheduled transaction is calculated using the given P-f characteristic
(Figure 2) in Equations (5)(9):
100 mHz 15 1
W1 = Ppq h = h Ppq (5)
200 mHz 60 8
50 mHz 1 1
W2 = Ppq h = h Ppq (6)
200 mHz 60 240
200 mHz 5 1
W3 = Ppq h = h Ppq (7)
200 mHz 60 12
100 mHz 10 1
W4 = Ppq h = h Ppq (8)
200 mHz 60 12
W = W1 + W2 + W3 + W4 = 0.3 h Ppq (9)

The resulting maximum and minimum SoC limits for activating an intraday trade, SoCmax,ID and
SoCmin,ID , are calculated with respect to the permitted SoC limits calculated in Equations (1) and (2)
and the maximum SoC deviation, W, according to Equations (10) and (11):

W EBatt 0.8 (0.55) h Ppq

SoCmax,ID = SoCmax = (10)
EBatt EBatt

W 0.8 (0.55) h Ppq

SoCmin,ID = SoCmin + = (11)
EBatt EBatt
If the SoC exceeds the SoCmax,ID or falls below the SoCmin,ID , a balancing intraday trade must be
activated to keep the SoC within the given boundaries. In accordance with [7], the minimum power,
PID , to be traded amounts to 25% of the prequalified PCR power, Ppq , to counteract the maximum
normal frequency deviation of 50 mHz.

5.6. Simulation Parameters

To identify the optimal set of parameters to control a PCR storage system, Matlab was used to
simulate a variety of potential sets by applying a frequency curve for the whole year of 2012 in 1-s
increments. The parameter sets investigated are given in Table 4.

Table 4. Parameter sets for the simulation.

Parameter Description Range Increment

SoCdes Desired SoC 48%54% 0.01
TID,buy Buying duration 1545 min 15 min
TID,sell Selling duration 1545 min 15 min
PID,buy Bought power 0.25Ppq 0.65Ppq 0.1Ppq
PID,sell Sold power 0.25Ppq 0.85Ppq 0.1Ppq
Ppq PCR power 0.5EBatt /h0.9EBatt /h 0.1EBatt /h

For every possible combination of parameters, the PCR power, Ppq , was reduced from 0.9EBatt /h
to 0.5EBatt /h until the SoC regulations given in [7] were kept or 0.5EBatt /h was reached.

5.7. Economic Evaluation Strategy

To properly perform an economic evaluation, the following assumptions were made for costs and
energy prices for PCR power and battery-cell aging.

5.7.1. Pricing
The 2014 PCR pricing data published on the website, www.regelleistung.net, was evaluated to
assume a suitable average price for PCR power. Frequency data from 2015 was not available in a
satisfactory quality; hence, data from 2014 was used. The average electricity price in 2014 from the
Batteries 2016, 2, 29 9 of 21

EPEX intraday stock was determined by evaluating the appropriate published data from the EPEX
website. The necessary taxes when purchasing power on the EPEX were obtained from the published
price sheet for 2015 from the Bavarian Distribution Grid Operator (DSO) KWH Netz GmbH [10].

5.7.2. Battery Degradation via Aging

To determine the possible yearly profit, we used a proprietary power-flow simulation model,
implemented and ran in Matlab, to assess the technical and economic outcomes of the residential
PV-battery system presented in [11].
The battery-aging model used in this simulation was specified using the following definitions
and assumptions based on [1216] and considering various in-house experiments undertaken on
lithium-ion battery cells [17]. We assumed a capacity fade via both electro-chemical and mechanical
mechanisms, which contrasted with the majority of the literature [18].
The end-of-life(time) (EoL) criterion is defined as the point when the battery state of health (SoH)
falls below 80% of the nominal capacity of the battery, which is a commonly used estimate according
to the U.S. Advanced Battery Consortium (USABC). Furthermore, we assumed an ideal superposition
of calendric and cyclic aging. The capacity loss due to the two aging effects is summed up at any
given moment and reduces the remaining capacity until the EoL is reached. The increase of the
batterys inner resistance and a decrease in its efficiency are neglected because until the EoL is reached,
only insignificant changes can be observed in this parameter.
Calendric aging is dependent only on the time that has passed. Because of the low currents with
charge values lower than 0.5C in this application, the battery temperature would not rise more than
2 K, assuming there is a climate-control system cooling the batteries. Our own research shows that for
a 200 kWh, 250 kW prototype BESS under low c-rate conditions the battery cell produced heat does
not induce enough heating to increase the aging phenomena.
Therefore, for the sake of simplicity, the temperature influence on calendric and cyclic aging was
neglected. The dependence of the batterys SoC on calendric aging was disregarded as well because
the mean SoC stays in a constant range of approximately 60% over the entire duration of its operation.
The cyclic aging in this model depends only on the depth of cycle (DoC) of the applied load profile
with alternating charging, discharging, and idle time segments. Here, we assumed that the SoC range
in which the battery is cycled does not change the resulting capacity loss through cycling. We applied
an approach that counts half cycles, which are determined using the following rules:

(1) Sign change of load (from charge to discharge or vice versa);

(2) Change from charge/discharge to idle mode or vice versa;
(3) Relatively strong change of gradient during charge or discharge (i.e., C rate = 0.6).

After one half-cycle is completed, the determined DoC was used to calculate the proportional
capacity loss according to the Whler curve of the batterys cycle lifetime. The Whler curve represents
the achievable cycles until EoL for each DoC [19]. Typically, this curve has an exponential shape,
which shows that a load profile of small cycles leads to a higher number of equivalent full cycles
before the EoL is reached than a load profile with large cycles, as shown in [20]. In the aging model,
the aging of one detected half-cycle corresponds to the inverse of the achievable cycles until the EoL of
the specific DoC is reached. One half-cycle is assumed to result in half of the capacity loss associated
with the corresponding full cycle with the same DoC.

5.7.3. Inability to Forecast the Market

An important issue concerning the PCR market in Germany is market pricing. Whereas other
types of control reserve inherit power and energy prices, PCR only follows a power price, which is
set weekly. Because bidding by the participants in this market is secret, there is no method to forecast
market prices for the next week. The market behavior over the past three years has been so inconsistent
that only rough estimates of future pricing are possible. Hence, we assumed a market price for bidding
Batteries 2016, 2, 29 10 of 21

that guaranteed a 100% acceptance rate to calculate maximum profits. For a PCR BESS in Germany,
it was possible to achieve a 100% acceptance rate in 2015. Nevertheless, the logic behind the bidding
process is not public.
Batteries 2016, 2, 29 10 of 20
6. Results
6. Results
In the following paragraphs, we present the results of a PCR BESS simulation performed using
the methodIn the following
outlined paragraphs, we present the results of a PCR BESS simulation performed using
above.
the method outlined above.
6.1. Degrees of Freedom Usage
6.1. Degrees of Freedom Usage
To illustrate the impact of each DoF, one sample week with a fixed set of parameters (Table 5) was
simulatedTowith
illustrate
a Ppqthe impact of eachto
corresponding DoF,
a Cone
ratesample week
of 0.58 for with
everya fixed
DoF. set
Forofthis
parameters (Table
example, 5)
the 30-min
was simulated with a Ppq corresponding to a C rate of 0.58 for every DoF. For this example, the 30-
criterion was taken into account.
min criterion was taken into account.
Table 5. Parameter set for illustration.
Table 5. Parameter set for illustration.
Parameter
Parameter Value
Value Unit
Unit
SoC
SoC des des 50%
50% --
TID,buy
TID,buy 15
15 min
min
TID,sell
TID,sell 15
15 min
min
PID,buy
PID,buy 0.55EBatt
0.55E Batt --
PID,sell
PID,sell
0.55EBatt
0.55EBatt --

The appropriate frequency

The appropriate curve
frequency curvefor
forthe
theconsidered weekisisshown
considered week shownin in Figure
Figure 4. 4.

Figure 4. Exemplary frequency curve in the period considered, including a floating average of 60 min.
Figure 4. Exemplary frequency curve in the period considered, including a floating average of 60 min.

6.1.1.6.1.1.
StateState of Charge
of Charge Behavior
Behavior withoutScheduled
without Scheduled Transactions
Transactions
Without
Without using
using scheduledtransactions
scheduled transactions asas
a DoF to control
a DoF the battery
to control SoC, a violation
the battery of the givenof the
SoC, a violation
given SoC limits cannot be avoided, and the storage might reach its physical SoC limits5).(Figure
SoC limits cannot be avoided, and the storage might reach its physical SoC limits (Figure The 5).
effectiveness of the considered DoFs strongly differs, the superiority of the dead band provision (the
The effectiveness of the considered DoFs strongly differs, the superiority of the dead band provision
green curve) becomes obvious, and adjusting the provision rate has almost no influence on the battery
(the green curve) becomes obvious, and adjusting the provision rate has almost no influence on the
SoC.
battery SoC.
6.1.2. State of Charge Behavior with Scheduled Transactions
6.1.2. State of Charge Behavior with Scheduled Transactions
When using only scheduled transactions to control the battery SoC, the given limits were
When using
maintained, only
and scheduled
no further transactions
intervention to control
was necessary 6).battery SoC, the given limits were
the
(Figure
maintained, and
Even no further
though intervention
the additional was of
application necessary (Figure
the remaining 6).is not necessary, it can reduce the
DoFs
necessary
Even trading
though thevolume and, therefore,
additional the of
application running expenses of
the remaining the system.
DoFs Furthermore,
is not necessary, it critical
can reduce
frequency progressions
the necessary can beand,
trading volume attenuated, and slightly
therefore, higher expenses
the running values for Pof
pq are
thepossible
system.(Figure 7).
Furthermore,
Batteries 2016, 2, 29 11 of 21

critical frequency progressions can be attenuated, and slightly higher values for Ppq are possible
(FigureBatteries
7). 2016, 2, 29 11 of 20
Batteries 2016, 2, 29 11 of 20
Batteries 2016, 2, 29 11 of 20

Figure 5. SoC characteristics for different DoFs.

Figure 5. SoC
Figure 5. SoCcharacteristics fordifferent
characteristics for different DoFs.
DoFs.
Figure 5. SoC characteristics for different DoFs.

Figure 6. SoC characteristics when using only scheduled transactions.

Figure 6. SoC characteristics when using only scheduled transactions.
Figure 6. SoC characteristics when using only scheduled transactions.
Figure 6. SoC characteristics when using only scheduled transactions.

Figure 7. SoC characteristics for using all DoFs.

Figure 7. SoC characteristics for using all DoFs.
Figure 7. SoC characteristics for using all DoFs.
Figure 7. SoC characteristics for using all DoFs.
Batteries 2016, 2, 29 12 of 21

6.2. Overall Parametrization

Based on the taxes and prices given in Table 6, the annual revenue was calculated for every
possible combination of the parameters given in Table 4.

Table 6. Assumed taxes and prices for Germany in 2015. KWK: combined heat and power; and EPEX:
European Energy Exchange.

Variable Value Unit

Electricity tax 2.05 cent/kWh
Concession levy 1.32 cent/kWh
KWK charge 0.379 cent/kWh
Offshore charge 0.04 cent/kWh
19 charge 0.378 cent/kWh
PCR revenue 170 /kWa
EPEX Intraday 3.00 cent/kWh
VAT 19% -

The resulting ideal parameters that yielded the maximum overall revenue are shown in Table 7.

Table 7. Ideal parameter set evaluated via simulation of years 2013 and 2014.

Parameter Description 30-min Criterion 15-min Criterion

SoCdes Desired SoC 0.52 0.51
TID,buy Buying duration 15 min 15 min
TID,sell Selling duration 15 min 15 min
PID,buy Bought power 0.35Ppq 0.45Ppq
PID,sell Sold power 0.55Ppq 0.55Ppq
Ppq PCR power 0.58EBatt /h 0.82EBatt /h
SoCmax Maximum SoC 0.71 0.795
SoCmin Minimum SoC 0.29 0.205
SoCmax,ID SoC limit sell 0.536 0.549
SoCmin,ID SoC limit buy 0.464 0.451

The ideal set of evaluated parameters was additionally validated using the grid frequencies
from 2013 and 2014. The assumed simulation parameters are shown in Table 8, where PID,buy is
rounded down and PID,sell is rounded up to an integer multiple of a hundred to meet the regulations
for scheduled transactions on the EPEX and minimize their costs.

Table 8. Parameters for validation simulations.

Parameter Description 30-min Criterion 15-min Criterion

Ebatt Battery energy content 1725 kWh 1220 kWh
Ppq PCR power 1000 kW 1000 kW
PID,buy Bought power 300 kW 400 kW
PID,sell Sold power 600 kW 600 kW

Figure 8 shows the SoC curves of the simulated battery storage systems over a full year for the
grid frequencies from 2012, 2013 and 2014. The SoC limits were included, and the 30-min and 15-min
criteria were considered. In every case, at least one SoC exceeds the limit values when the frequency
departed from the normal progression given in Section 2.3. This SoC behavior is tolerated in accordance
with [7], and the suggested parametrization of the PCR battery storage is, therefore, fit for use.
The characteristics of the SoC curves can be seen in more detail in Figure 9, where the probability
distribution of the SoC is plotted for the two storage sizes according to the 15-min and 30-min criteria
Batteries 2016, 2, 29 13 of 21

Batteries 2016, 2, 29 13 of 20
(1220 kWh, 1775 kWh) over one year of operation using the 2012 frequency data. The SoC shows an
almost normal distribution at approximately 50% and remains in the region between 35% SoC and 65%
65% SoC using the DoFs and scheduled transactions at the EPEX. The SoC probability distribution for
SoC using the DoFs and scheduled transactions at the EPEX. The SoC probability distribution for the
the 1220 kWh storage is located approximately four SoC percentage points to the left of that for the
1220 kWh storage is located approximately four SoC percentage points to the left of that for the larger
larger storage
Batteries 2016,size
2, 29 because of the larger possible operation range that assumes the 15-min 13
criterion.
of 20
storage size because of the larger possible operation range that assumes the 15-min criterion.
65% SoC using the DoFs and scheduled transactions at the EPEX. The SoC probability distribution for
the 1220 kWh storage is located approximately four SoC percentage points to the left of that for the
larger storage size because of the larger possible operation range that assumes the 15-min criterion.

Figure8.8.SoC
Figure SoCcurves
curves
and(a)
and
SoCSoC limits
limits (red (red
lines)lines) generated
generated (b)simulations:
via validation
via validation simulations: (a) 30-min-
(a) 30-min-criterion;
criterion;
and (b) and (b) 15-min-criterion.
15-min-criterion.
Figure 8. SoC curves and SoC limits (red lines) generated via validation simulations: (a) 30-min-
criterion; and (b) 15-min-criterion.
Forthe
For thesamesame scenario,
scenario, Figure
Figure 99 shows
shows the probability
probability distribution
distribution of the C rates. Here,Here, thethe shapes
shapes
donot
do For
notrepresent the same
representaanormal scenario, Figure
normaldistribution. 9 shows
distribution. Inside the
Inside theprobability
the dead
dead banddistribution
band defined of
defined bythe C
by therates. Here,
the CCrates the shapes
rates((0.05+0.05C),
0.05+0.05C),
do not
thisDoF
DoF represent
onlyato normal distribution.
the storageInside the dead band defined by the C rates (0.05+0.05C),
this isisused
used only to charge
charge the systems; this results in a gap in the the region
region ofof the
the discharge
discharge
this DoF is used only to charge the storage systems; this results in a gap in the region of the discharge
direction in the dead band. Furthermore, in this probability distribution, the
direction in the dead band. Furthermore, in this probability distribution, the scheduled transactions at scheduled transactions
direction in the dead band. Furthermore, in this probability distribution, the scheduled transactions
at the
the EPEXEPEX can be seen as peaks for charge and discharge transactions withconstant
their constant power
at thecan EPEXbe can
seen beasseen
peaks for charge
as peaks and discharge
for charge and dischargetransactions withwith
transactions their
their constantpower
power values,
values,
as shown as shown
in as
Table in Table
7. Itincan 7. It
be 7. can
observed be observed that the two storage sizes are operated mainly
at C rates at C
values, shown Table It can bethat the two
observed thatstorage
the twosizes are sizes
storage operated mainly mainly
are operated at Cbelow
rates below
0.2C,rates
resulting 0.2C,
belowin resulting
a small
0.2C, in
aging
resulting a small
in impact, aging
which
a small aging impact, which
is evaluated
impact, is
which isin evaluated
Section in
evaluated in
7.2. Section
Section 7.2. 7.2.

Figure 9. Relative frequency of SoC over one year of operation.

Figure 9. Relative frequency of SoC over one year of operation.
Figure 9. Relative frequency of SoC over one year of operation.
In Figures 10 and 11, a closer look at the operating characteristics of the various storage sizes is
In Figures 10 and
possible. By detecting 11,the
a closer look of
half-cycles at the
the SoC
operating characteristics
curve, the cycle depths of theC various
and rates for storage sizes is
each cycle
In
possible.Figures
wereBy
10 and
detecting
registered
11,
andthe
a closer
arehalf-cycles
look
shown in the
at the operating
the SoC curve,
of probability characteristics
the cycle
distribution depths
data for one
of
and the
years
various
C rates storage
for each
operation
sizes
cycle
using the were
is
possible.
registered By detecting
and are shown
2012 frequency the
data. In in half-cycles
thethe of
probability
half-cycle, the SoC curve,
distribution
counting cycles with the
data cycle
DoCfor depths
one
< 1% areyearsand C rates
operation
neglected; for each
using
this results in the cycle
the 2012
weregap
registered
frequency indata. and
In theare
the middle of shown
the plot.inMost
half-cycle, the probability
of thecycles
counting distribution
cycleswith DoC
appear with data
arefor
|DoCs|
< 1% <one
5% years
and |C
neglected; operation
thisrates| using
< 0.2.
results in the
In gap
the
2012contrast,
frequency data.
larger In the
cycle half-cycle,
depths counting
appear with cycles
|C rates| with DoC < 1% are neglected; this results in the
> 0.2.
gap in the middle of the plot. Most of the cycles appear with |DoCs| < 5% and |C rates| < 0.2. In
contrast, larger cycle depths appear with |C rates| > 0.2.
Batteries 2016, 2, 29 14 of 21

in the middle of the plot. Most of the cycles appear with |DoCs| < 5% and |C rates| < 0.2. In contrast,
largerBatteries
cycle2016,
depths
2, 29
appear with |C rates| > 0.2. 14 of 20
Batteries 2016, 2, 29 14 of 20

Figure 10. Relative frequency of the C rate.

Figure 10.Relative
Figure10. Relative frequency theC C
frequency ofofthe rate.
rate.

Figure 11. Relative frequency of cycle depth and C rate in 2014.

Figure 11. Relative frequency of cycle depth and C rate in 2014.
Figure 11. Relative frequency of cycle depth and C rate in 2014.
7. Economic Impact
7. Economic Impact
7. Economic Impact
7.1. Pricing Impact
7.1. Pricing Impact
7.1. Pricing Impact
The revenues from operating a PCR storage system originate from the PCR power provided and
The revenues
its specific traded from
price operating a PCR storage
and the amount system
of energy originate
traded on thefrom
EPEXtheintraday
PCR power provided
market resultsand
in
The
its revenues
specific tradedfrom operating
price and the a PCR of
amount storage
energy system
traded originate
on the EPEXfrom the PCR
intraday power
market provided
results in
adjustments to the battery SoC (Section 2.2). Using the ideal parameterization shown in Table 7 and
and its specific traded
adjustments price and the amount of energy traded on the EPEXshown
intraday market results
assuming thetopricing
the battery SoC (Section
in Tables 1 and 6,2.2).
the Using the ideal
following parameterization
yearly revenues and expenses inbased
Table 7 and
on the
in adjustments
assuming
provided PCRtheto pricing
the
powerbattery
were SoC 1(Section
in Tables
obtainedand 2.2).
for6,operating
the Using
following the ideal
yearly
the storage parameterization
revenues
system andand
areexpenses shown inthe
based9.on
given in Table Table 7
and assuming
provided PCR the pricing
power werein Tables 1 and
obtained 6, the following
for operating yearly
the storage revenues
system and areand expenses
given in Tablebased
9. on the
provided PCR power were obtained for9.operating
Table the storage
Yearly revenues system and are given in Table 9.
and expenses.
Table 9. Yearly revenues and expenses.
Parameter 30-min Criterion 15-min Criterion
Table
Parameter
PCR sales
9. Yearly revenues
30-min and 15-min
+170Criterion
/kW
expenses.
+170Criterion
/kW
PCR sales
EPEX sales +170 /kW
+5 /kW +170 /kW
+5.5 /kW
EPEX
EPEX sales
Parameter
purchases +5 /kW
30-min
11.5Criterion
/kW +5.5 /kW
15-min
17.0 Criterion
/kW
EPEX purchases
Overall 11.5 /kW
+163.5 /kW +158.5/kW
17.0 /kW
PCR sales +170 /kW +170 /kW
Overall +163.5 /kW +158.5 /kW
EPEX sales +5 /kW +5.5 /kW
To determine theEPEX
possible profit from PCR
purchases storage,
11.5 /kWinvestment costs
17.0 must be taken into account.
/kW
To determine the possible profit fromfor
PCR storage, 1investment costs must be taken into account.
Therefore, the battery capacity necessary
Overall +163.5 /kW kW of PCR
providing /kW
power
+158.5 must also be considered
Therefore, the battery capacity necessary for providing 1 kW of PCR power must also be considered
Batteries 2016, 2, 29 15 of 21

To determine the possible profit from PCR storage, investment costs must be taken into account.
Therefore, the battery capacity necessary for providing 1 kW of PCR power must also be considered in
the possible revenues given in Table 9. This capacity is calculated by dividing EBatt by Ppq , which is
given in Table 7. The resulting possible yearly revenues based on the available battery capacity are
95 /kWh for the 30-min criterion and 130 /kWh for the 15-min criterion.
Prior to assuming reasonable battery storage investment costs and calculating the actual possible
profits from providing PCR power, an aging simulation was necessary to determine the yearly capacity
degradation and battery lifetime because profitability mainly depends on the market evolution and
battery lifetime.

7.2. Aging Impact

To reduce any potential precision loss for the final calculations and results, battery aging was
considered as described in Section 5.7.2. Therefore, the aging model estimated the influence of the
simulated capacity of the BESS on the overall performance. Based on the cycle-counting approaches
found in [11], we identified five different parameter sets, defined as scenarios, for the aging model:
Scenario 1medium aging Literature-dependent setup with a degradation to 80% SoH after
5000 cycles and a calendric lifetime of 15 years.
Scenario 2weak aging A weak aging approach where 80% SoH is reached after 6000 full
cycles with a calendric lifetime of 15 years.
Scenario 3strong aging A strong aging approach where 80% SoH is reached after 3000
full cycles with a calendric lifetime of 12.5 years.
Scenario 4optimistic aging An optimistic aging approach where 80% SoH is reached after
14,000 full cycles with a calendric lifetime of 20 years.
Scenario 5oversizing A different optimistic approach where parameter setup 1 is
facilitated by oversizing the battery by a factor of 1.5, resulting in
a power rating of 1.66 MW and an energy content of 2.62 MWh
while the offered PCR power remains the same.

Table 10 gives comprehensive information on the variations in our simulation setup and our
results in terms of the criteria, BESS power, BESS energy, the frequency data year used, and aging
models. For easier access to the information, we added capacity degradation resulting from calendric
and cyclic aging to the table, and the aging scenarios are given in the text immediately above.
The aging data given in Table 10 represents the total loss in capacity from the initial capacity at
the simulation start. From our data, we concluded that BESS sizing has a strong influence on the aging
effects. The literatures [11,15,16] show that BESS aging is derived from several factors, e.g., the DoC,
mean value of the SoC, and the C rate, among others. Figure 12 depicts the BESS size and total aging
of the BESS drawn from data from the years 2012 to 2014 and a three-year simulation using a mean
value for all aging scenarios. Because of the larger BESS capacity, the DoCs decrease, resulting in less
capacity fading and smaller absolute values for the C rates. Both the yearly and three-year simulations
show the same behavior.
Batteries 2016, 2, 29 16 of 21

Table 10. Assumptions and results for the given aging scenarios with BESS property sensitivity
according to cyclic and calendric aging.

Assumptions Results
Calendric Cyclic
Energy Aging Lifetime Lifetime Aging
Criterion Power Year Aging in Aging in
Content Model Cyclic Calendric in %
% %
Strong 3000 12.5 3.27 1.60 1.67
Medium 5000 15 2.24 1.33 0.91
2012
Weak 6000 15 1.57 1.33 0.24
Optimistic 14,000 20 1.10 1.00 0.10
Strong 3000 12.5 3.05 1.60 1.45
Medium 5000 15 2.09 1.33 0.76
2013
Batteries 2016, 2, 29 Weak 6000 15 1.53 1.33 0.20
16 of 20
Optimistic 14,000 20 1.08 1.00 0.08
15-min 1.22 MWh Strong 30003000 12.5 12.5 2.902.52 1.60 1.30
Strong 1.60 0.92
Medium
Medium 50005000 15 15 2.031.72 1.33
1.33 0.70
0.39
20142013
WeakWeak
60006000
15 15
1.511.44
1.33
1.33
0.18
0.11
Optimistic 14,000 20 1.08 1.00 0.08
Optimistic 14,000 20 1.04 1.00 0.04
Strong 3000 12.5 8.33 4.80 3.53
Strong 3000 12.5 2.44 1.60 0.84
Medium 5000 15 5.15 4.00 1.15
20122014 Medium 5000 15 1.71 1.33 0.37
2014 Weak 6000 15 4.34 4.00 0.34
Weak 6000 15 1.43 1.33 0.10
Optimistic 14,000 20 3.14 3.00 0.14
1 MW Optimistic 14,000 20 1.04 1.00 0.04
Strong 3000 12.5 2.71 1.60 1.11
Strong 3000 12.5 6.82 4.80 2.02
Medium 5000 15 1.82 1.33 0.49
2012 Medium 5000 15 4.73 4.00 0.73
20122014 Weak 6000 15 1.47 1.33 0.13
Weak 6000
Optimistic 14,000 20 15 1.064.17 4.00
1.00 0.17
0.06
Optimistic 3000
Strong 14,000 12.5 20 2.523.07 3.00
1.60 0.07
0.92
Oversizing 50003000
Medium 15 12.5 1.722.71 1.60
1.33 1.11
0.39
2013 Oversizing 60005000
1.6 MW 2.66 MWh 2012 Weak 15 15 1.441.82 1.33
1.33 0.49
0.11
Oversizing 14,000
Optimistic 6000 20 15 1.041.47 1.33
1.00 0.14
0.04
1.77 MWh
Oversizing 3000
Strong 14,000 12.5 20 2.441.06 1.00
1.60 0.06
0.84
30-min Medium 5000 15 1.71 1.33 0.37
2014
The aging data given in Table 10 represents Weak the total6000 loss in15capacity1.43 1.33
from the initial 0.10 at
capacity
Optimistic 14,000 20 1.04 1.00 0.04
the simulation start. From our data, we concluded Strong
that
3000
BESS 12.5
sizing has6.82a strong 4.80
influence on2.02
the
aging effects. The literatures [11,15,16] show that BESS
Medium aging is derived
5000 15 from
4.73 several factors, e.g.,
4.00 0.73the
20122014
DoC, mean value of the SoC, and the C rate, Weak 6000 Figure
among others. 15 12 depicts
4.17 the BESS
4.00 size and0.17
total
Optimistic 14,000 20 3.07 3.00 0.07
aging of the BESS drawn from data from the years 2012 to 2014 and a three-year simulation using a
Oversizing 3000 12.5 2.71 1.60 1.11
mean value for all aging scenarios. Because of the larger
Oversizing 5000BESS capacity,
15 the
1.82DoCs decrease,
1.33 resulting
0.49
1.6 MW 2.66 MWh 2012
in less capacity fading and smaller absolute values for
Oversizing 6000the C rates.
15 Both1.47
the yearly and three-year
1.33 0.14
simulations show the same behavior. Oversizing 14,000 20 1.06 1.00 0.06

Figure12.
Figure 12.Influence
Influenceof
of BESS
BESS sizing
sizing on
on aging
agingby
byyear.
year.

When the aging behavior is separated into calendric and cyclic aging effects, another result is
visible. Calendric aging occurs at any time, regardless of the C rate, the DoC, or other factors.
However, cyclic aging depends on the DoC, the initial mean SoC of a cycle, and the C rate, among
other factors. Figure 13 depicts BESS setups with different power-to-energy (P/E) ratios and the
resulting aging appearance. Calendric aging is similar in all three setups.
Whereas calendric aging shows no influence on the P/E ratio, cyclic aging has a different aging
behavior. As described above, deeper cycles result in more extensive aging [11,15]. Hence, for the
Batteries 2016, 2, 29 17 of 21

When the aging behavior is separated into calendric and cyclic aging effects, another result is
visible. Calendric aging occurs at any time, regardless of the C rate, the DoC, or other factors. However,
cyclic aging depends on the DoC, the initial mean SoC of a cycle, and the C rate, among other factors.
Figure 13 depicts BESS setups with different power-to-energy (P/E) ratios and the resulting aging
appearance. Calendric aging is similar in all three setups.
Whereas calendric aging shows no influence on the P/E ratio, cyclic aging has a different aging
behavior. As described above, deeper cycles result in more extensive aging [11,15]. Hence, for the
same power (1 MW), a larger BESS (1.77 MWh) has a decrease in aging compared to a smaller BESS
(1.22 MWh) when the same load is applied. However, this relationship does not hold when the BESS
power is adjusted non-linearly (1.6 MW) with the BESS capacity (2.66 MWh). An increase in aging is
observed, and it is related to deeper cycles and higher C rates than the other setups.
Comparing the overall results in terms of the scenario definition, a few specific tendencies were
observed.
Batteries First,
2016, 2, an
29 increase in the cyclic or calendric lifetime leads to a decrease in aging. 17 ofSecond,
20
the cyclic life and calendric lifetime are not linearly correlated to the BESS aging. Figure1714
Batteries 2016, 2, 29 of 20
shows
cyclic
that for thelife anddata,
2012 calendric lifetime are
heavy-duty not(3000
aging linearly correlated
cycles to EoL) to results
the BESSinaging.
a totalFigure
aging14ofshows that
3%. However,
cyclic
for thelife
2012and calendric
data, lifetime
heavy-duty are(3000
aging not linearly
cycles correlated
to EoL) to the
in aBESS
totalaging. Figure 14 shows that
our optimistic scenario (14,000 cycles to EoL) results inresults
only 1% aging. aging
Thisof 3%. However,
difference our
is explained
optimistic scenario (14,000 cycles to EoL) results in only 1% aging. This difference is explained by our
for the 2012 data, heavy-duty aging (3000 cycles to EoL) results in a total aging of 3%. However, the
by theoptimistic
differences in cycle andcycles
calendric aging.
resultsWhen the cycle life is very weak, each equivalent the full
differencesscenario
in cycle (14,000
and calendric to EoL)
aging. When in only
the cycle1%
lifeaging.
is veryThis difference
weak, is explained
each equivalent fullbycycle
cycledifferences
has a significant
in cycle impact
andon on the
calendric overall
aging. aging
When processes.
the cycle However,
life is very weak, a high
each cycle life results
cycle in a
has a significant impact the overall aging processes. However, a high cycle life equivalent
results in a full
decrease
decrease
has
in ain
cyclic cyclic
aging,aging,
significant impact
and and
only on only calendric
the overall
calendric aging
aging aging is observed.
processes.
is observed. However, a high cycle life results in a decrease
in cyclic aging, and only calendric aging is observed.

Figure 13. BESS sizing influence on aging effects.

Figure 13.13.BESS
Figure BESSsizing
sizing influence onaging
influence on agingeffects.
effects.

Figure 14. Aging influence of predefined scenarios on overall BESS performance (mean values of BESS
Figureand
power 14. Aging
sizes influence
were takenofinto
predefined scenarios
accountscenarios on
for betteron overall BESS performance (mean values of BESS
results).
Figure 14. Aging influence of predefined overall BESS performance (mean values of BESS
power and sizes were taken into account for better results).
power and sizes were taken into account for better results).
In addition, Figure 13 shows the effects of oversizing a storage system. In 2012, simulations were
In addition,
performed with aFigure
system 13 oversized
shows the effects of oversizing
by a factor a storagethe
of 1.6, applying system.
sameInload
2012,used
simulations were
for all other
performed with a system oversized by a factor of 1.6, applying the same load used
systems. A decrease in aging from 3% to 1.8% was observed. Since the overall P/E ratio changed, thefor all other
systems.
aging A decrease
decrease in aging
does not fromwith
correlate 3% to 1.8%
only thewas observed.
BESS capacity.Since the overall
Therefore, P/E ratiosystem
an oversized changed, the
is not,
aging decrease does not correlate with only the BESS capacity. Therefore, an oversized system
in general, suitable for increasing the lifetime. A better cell quality, which is more expensive but has is not,
ainhigher
general, suitable
lifetime for increasing
expectancy, the
solves lifetime.
this problem.A better cell quality, which is more expensive but has
Batteries 2016, 2, 29 18 of 21

In addition, Figure 13 shows the effects of oversizing a storage system. In 2012, simulations
were performed
Batteries 2016, 2, 29 with a system oversized by a factor of 1.6, applying the same load used for all18other of 20
Batteries 2016, 2, 29 18 of 20
systems. A decrease in aging from 3% to 1.8% was observed. Since the overall P/E ratio changed,
the aging
two storage
decrease system
doessizes, we observed
not correlate different
with only peakscapacity.
the BESS among Therefore,
the DoCs because of the system
an oversized differentis
the two storage system sizes, we observed different peaks among the DoCs because of the different
operation modes
not, in general, of the 15-min
suitable and 30-min
for increasing criteria.A better cell quality, which is more expensive but
the lifetime.
operation modes of the 15-min and 30-min criteria.
has aUsing
higherthe probability
lifetime distribution
expectancy, of the
solves this DoCs, we calculated the specific impact on the cyclic
problem.
Using the probability distribution of the DoCs, we calculated the specific impact on the cyclic
aging, which15
Figures is and
represented
16 allowin Figurelook
a closer 16. In
at this figure,characteristics
the aging we see the ratioforof the particular
operation of the cyclic aging
two storage
aging, which is represented in Figure 16. In this figure, we see the ratio of the particular cyclic aging
related
system to the overall
sizes, 1220 kWh cyclic
andaging
1775for eachaccording
kWh, DoC after to one year
the of operation.
15-min and 30-minAgain, |DoCs|
criteria. In <Figure
1% were 15,
related to the overall cyclic aging for each DoC after one year of operation. Again, |DoCs| < 1% were
neglected because
the probability of their small
distribution of the effect on cyclic
cycle depths aging.
(DoC) As explained
is shown in Section
for one year 5.7.2, smaller
of operation assuming DoCs
the
neglected because of their small effect on cyclic aging. As explained in Section 5.7.2, smaller DoCs
result in less cyclic
2012 frequency aging
data. andwith
Cycles capacity
|DoCs|degradation
< 1% occur than
verylarger
oftenDoCs, which
and are is alsoinobserved
neglected in this
the probability
result in less cyclic aging and capacity degradation than larger DoCs, which is also observed in this
figure. The impact
distribution becauseof the DoCs insignificant
of their near 10% is nearly
impacttheonsamecyclicas that of the
aging. We|DoCs|
can see< 5%,
thatalthough the
cycles with
figure. The impact of the DoCs near 10% is nearly the same as that of the |DoCs| < 5%, although the
cycles
|DoCs|with < 15% DoC < 5% occur
in discharge andmore often
|DoCs| than inthe
< 20% thelarger
chargecycles. Nevertheless,
direction were most in thisdetected.
often storage
cycles with DoC < 5% occur more often than the larger cycles. Nevertheless, in this storage
application,
Comparing the thetwocyclic agingsystem
storage appears much
sizes, wesmaller
observedthan in other
different applications
peaks among thesuch
DoCsas residential PV
because of the
application, the cyclic aging appears much smaller than in other applications such as residential PV
storage
different[11], where modes
operation we observe
of thelarger
15-minDoCs
andthat result
30-min in significant cyclic aging.
criteria.
storage [11], where we observe larger DoCs that result in significant cyclic aging.

Figure 15. Relative frequency of cycle depth.

Figure 15. Relative
Figure 15. Relative frequency
frequency of
of cycle
cycle depth.
depth.

Figure 16. Percentage of cyclic aging versus cycle depth.

Figure 16.
Figure 16. Percentage of cyclic
Percentage of cyclic aging
aging versus
versus cycle
cycle depth.
depth.

8. Conclusions
8. Conclusions
Using the probability distribution of the DoCs, we calculated the specific impact on the cyclic
aging,Our workisassessed
which the fundamentals
represented ofthis
in Figure 16. In using BESSwe
figure, to provide PCRs ofin theparticular
UTCE area. Weaging
have
Our work assessed the fundamentals of using BESS to see the ratio
provide PCRs the
in the UTCE area.cyclic
We have
(i) shown the technical requirements for BESS operation as PCR provision systems; (ii) provided
(i) shown the technical requirements for BESS operation as PCR provision systems; (ii) provided
explanations of the PCR market and regulations; (iii) demonstrated a methodical approach for
explanations of the PCR market and regulations; (iii) demonstrated a methodical approach for
operating BESS as PCR storage systems; and (iv) shown potential earnings for such a system. We
operating BESS as PCR storage systems; and (iv) shown potential earnings for such a system. We
know from the literature, our own research, and expert knowledge that using BESS as PCRs in
know from the literature, our own research, and expert knowledge that using BESS as PCRs in
Germany currently (as of April 2016) would show significant economic gains compared to other
Germany currently (as of April 2016) would show significant economic gains compared to other
Batteries 2016, 2, 29 19 of 21

related to the overall cyclic aging for each DoC after one year of operation. Again, |DoCs| < 1% were
neglected because of their small effect on cyclic aging. As explained in Section 5.7.2, smaller DoCs
result in less cyclic aging and capacity degradation than larger DoCs, which is also observed in this
figure. The impact of the DoCs near 10% is nearly the same as that of the |DoCs| < 5%, although the
cycles with DoC < 5% occur more often than the larger cycles. Nevertheless, in this storage application,
the cyclic aging appears much smaller than in other applications such as residential PV storage [11],
where we observe larger DoCs that result in significant cyclic aging.

8. Conclusions
Our work assessed the fundamentals of using BESS to provide PCRs in the UTCE area. We have
(i) shown the technical requirements for BESS operation as PCR provision systems; (ii) provided
explanations of the PCR market and regulations; (iii) demonstrated a methodical approach for
operating BESS as PCR storage systems; and (iv) shown potential earnings for such a system.
We know from the literature, our own research, and expert knowledge that using BESS as PCRs
in Germany currently (as of April 2016) would show significant economic gains compared to other
present applications of BESS; this was unexpected a year ago. Furthermore, the significance of our
research is backed by numerous projects currently being planned in Europe to use BESS to provide
PCRs (April 2016 > 200 MW are known). We have shown the technical readiness and system fitness of
BESS for serving as PCR systems in Germany and in any grid where frequency-control services are
needed. Hence, the scope of our work was to provide comprehensive knowledge to future operators
of PCR BESS systems. We concluded that BESS are able to serve PCRs from a technical and economic
perspective, and we fully uncovered the methodology behind this. However, we are aware that this
will change in the future with a rise renewable energy shares in Europe and increase numbers of BESS
installed in the grid.

9. Outlook and Limitations

We look forward to increasing our accuracy in both the system and aging simulations. In future
research, more aging effects will be included, and the precision of the data will increase. Nevertheless,
the data resulting from this research were within a prior set of tolerances and are valid. We are willing
to offer complete datasets for PCR calculations and the algorithm basis with no constraints to run a PCR
BESS. The BESS and aging simulation data are not inherited due to numerous author contributions.
For this reason, we strongly encourage direct contact with the authors to obtain access to the datasets.

Acknowledgments: The authors thank Cong Nam Troung for managing the SimSES simulation tool. The authors
thank the Bavarian Ministry of Economic Affairs and Media, Energy, and Technology for its financial support via
the EEBatt Project.
Author Contributions: Alexander Zeh and Marcus Mller conducted the PCR simulations, analyzed the data,
and conducted the aging simulations. Maik Naumann developed the aging model and evaluated the aging data
with Marcus Mller. Holger C. Hesse, Andreas Jossen, and Rolf Witzmann were consulted on the paper structure
and overall idea, and discussed the results.
Conflicts of Interest: The authors declare no conflicts of interest. The founding sponsors had no role in the design
of the study, the collection, analyses, interpretation of data, writing of the manuscript, and the decision to publish
the results.

Abbreviations

BESS Battery energy storage system

DoC Depth of cycle
DoF Degree of freedom
DSO Distribution grid operator
EES Energy storage system
EEG Renewable Energies Act
EnWG German Energy Economy Law
EPEX European Energy Exchange
Batteries 2016, 2, 29 20 of 21

IGCC International Grid Control Cooperation

LFP Lithium iron phosphate
NC LFCR European Network Code on Load Frequency Control & Reserves
NPV Net present value
PCR Primary control reserve
PV Photovoltaic
SCR Secondary control reserve
SoC State of charge
TCR Tertiary control reserve
TSO Transmission system operator

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