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Profitable multi-use of battery energy storage in outage mitigation and as frequency reserve

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Original languageEnglish
Pages (from-to)185-194
Number of pages10
JournalInternational Review of Electrical Engineering
Issue number3
Publication statusPublished - 2018
Publication typeA1 Journal article-refereed


Battery energy storage (BES) systems have high capital costs and low operational costs. This means that in order to introduce profitable BES applications, a high utilization rate should be achieved. The target of this study was to analyze the profitability of the BES system connected to a low voltage distribution network. The BES system is used for the power system’s frequency containment reserve (FCR-D) and to minimize customer interruption costs (CIC) according to the Finnish regulation model. Investment costs, including the required power electronic converters as well as the costs related to the lifetime decrease of the BES system during the 15-year period, are taken into account in the economic analysis. The FCR-D and CIC mitigation incomes are based on real measured data from the Finnish TSO and DSO. According to the results, the BES is a profitable investment if both FCR-D cost and CIC mitigation are used.

ASJC Scopus subject areas


  • Ancillary Services, Battery Energy Storage System, Energy Storage, Frequency Regulation, Investment Calculation, Outage Costs

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