Assessment of the potential of Battery Energy Storage Systems in current European markets designs

The deregulation of the electric sector in European countries along with recent technical and economic developments in energy storage technologies represent an opportunity for a market-driven integration of Battery Energy Storage Systems. This paper assesses the potential value of Battery Energy Storage Systems participating on electricity markets including ancillary services markets. The developed assessment method allows defining an upper bound of the value of battery systems in electricity markets with different inherent designs. Electricity markets in place in Portugal, Great Britain and Denmark are focused in this study. Moreover, this work investigates how market design and how different battery based storage system´s characteristics such as power and energy ratio impact in these markets.