R.L. Fares, J.P. Meyers, and M.E. Webber, January 2014 (Citation)
Building on past work seeking to value emerging energy storage technologies in grid-based applications, this paper introduces a dynamic model-based framework to value a vanadium redox flow battery (VRFB) participating in Texas’ organized electricity market. Our model describes the dynamic behavior of a VRFB system’s voltage and state of charge based on the instantaneous charging or discharging power required from the battery. We formulate an optimization problem that incorporates the model to show the potential value of a VRFB used for frequency regulation service in Texas. The optimization is implemented in Matlab using the large-scale, interior-point, nonlinear optimization algorithm, with the objective function gradient, nonlinear constraint gradients, and Hessian matrix specified analytically. Utilizing market prices and other relevant data from the Electric Reliability Council of Texas (ERCOT), we find that a VRFB system used for frequency regulation service could be worth approximately $1500/kW.
R.L. Fares, J.P. Meyers, and M.E. Webber, “A Dynamic Model-Based Estimate of the Value of a Vanadium Redox Flow Battery for Frequency Regulation in Texas,” Applied Energy 113, Pages 189–198 (10pp) (2014).