Managing Risks Faced by Strategic Battery Storage in Joint Energy-Reserve Markets

Securing profits from energy, reserve capacity and balancing markets is critical to ensure the profitability of battery energy systems (BES). However, intimate connection between offers on these trading floors combined with limited storage BES renders its scheduling very complex. In this paper, we develop a bilevel optimization problem for strategic participation in day-ahead energy-reserve markets, improving state-of-the-art by (i) considering conditional-value-at-risk; (ii) ensuring real-time feasibility obtained schedule; (iii) addressing operational underperformance risk stemming inaccurate modeling. case study, illustrate how proposed model allows risk-averse owners hedge their position without jeopardizing expected profit, while schedule.