Implementing and Optimizing Battery Energy Storage Systems in California's Utility-Scale Solar Plants

Abstract

This paper looks into Battery Energy Storage Systems (BESS) and whether they are a viable option to improving existing solar plants in California. This paper looks first at optimizing the yearly operation of BESS, given that you are aware of energy production information beforehand and subject to other constraints. This paper then focuses on a predictive approach to BESS, utilizing previous years’ information on energy production to optimize operation without knowledge of a current year’s production. This paper then looks to extend these models to a forecasting approach, seeing whether a BESS system can be profitable over a 20-year time horizon. This paper then shows that, under a set of assumptions on future electricity prices, energy production, and curtailment levels, you may be able to best determine which plants are most viable for BESS implementation. This paper concludes that while BESS may be economically viable for many plants, the decision to implement BESS should consider other factors outside of revenue, such as its effects on price variability, fossil fuel offsetting, and reducing overgeneration.