We have developed algorithms to determine the individual optimal management strategy for a given energy storage. The algorithm for determining the strategy takes into account known or forecasted prices on the Polish energy market, we automatically make a prediction of energy production in a given geographical location in an RES source (if it exists in the given installation), we make a prediction of energy consumption (if we are talking about a storage facility for an industrial end user), and determine the best strategy for a given storage facility for the following days using mathematical optimisation methods. Then, we update the strategy every six hours or so as more accurate weather forecasts and consumption predictions become available.
Technical and investment analyses
Using the algorithms described above for determining the optimum strategy, we carry out probably the most detailed analyses of the profitability of energy storage investments on the Polish market. What sets us apart is our ability to calculate in detail the differences in the revenue achieved depending on the method of determining the storage operation strategy. We are able to carry out analyses both for storage located at the industrial end user's site and at the site of the RES energy producer.
Typically, we take into account
- the revenue generated from arbitrage on the DAM,
- revenues from the capacity market or DSR services,
- we pre-calculate revenues from recently implemented balancing services.
We conduct our analyses by taking into account:
- site-specific meteorological data (important for RES production),
- historical or forecast energy prices,
- degradation and storage efficiency,
- the three different storage management strategies.
We determine the optimal storage capacity and output.
Bartosz Górecki, PhD – CEO/ Founder of QuickerSim
Mob: +48 503 444 886
E-mail: b(dot)gorecki(at)quickersim.com
Typical ways of placing a magazineMost often, investors choose one of three typical schemes for the siting of energy storage: directly at the RES generating source, at the industrial end-user's site or a free-standing site connected to the electricity gri
Most often, investors choose one of three typical schemes for the siting of energy storage: directly at the RES generating source, at the industrial end-user's site or a free-standing site connected to the electricity grid for balancing energy off-take and grid supply.
The key mechanism for monetising storage is to accumulate RES energy at times when energy is cheap on the market (or even negative prices prevail) and feed it back into the grid during the evening peak. In addition, the storage can participate in the power market and implement arbitrage. All elements are taken into account in the management and prior investment analysis. The culmination of the analysis is the determination of the optimal storage size for a given RES source capacity and connection capacity.
Analyses of the use of industrial energy storage in a company take into account the historical energy consumption profile. It is central to the analysis, as it determines the optimal storage size, the cost-effective extent of arbitrage. We also take into account the potential revenue to be generated from the DSR service (Demand Side Response) and increased self-consumption from the local PV installation. The culmination of the analysis is the determination of the optimal storage size for a given RES source capacity and connection capacity.
In this case, storage management strategies are optimised with a view to maximising revenues from arbitrage (e.g. on the DAM), participation in the capacity market and subsequently, the possible provision of balancing services on the RB. We select the economically and investment-optimised storage capacity for a specific grid connection capacity.
Features of the Analysis and Designated Management Strategy
Given the capacity of the RES source and the available power connection, there is an optimum storage capacity with the best profitability. We determine this volume for the particular case we are analysing.
When determining a charge/discharge strategy, we make an estimate of the degradation that a given cycle will cause. We have tested more than 100 cells in the laboratory and performed more than 50,000 cycles.
We have integrated our algorithms into the weather service API. We make a forecast of RES production for the next 24 hours for a specific location. This influences the optimal charging/discharging strategy.
The most important way for storage to generate revenue is through arbitrage on the DAM or Balancing Market. On top of that, we are able to update our strategy so that the storage operates in the power market or in the DSR service. We are working on the possibility to provide balancing services after Balancing Market reform.
Following the reform of the Balancing Market introduced on 14.06.2024, it is possible to provide energy storage with balancing services. This is currently the most attractive source of revenue for storage due to the currently very high remuneration for these services. Unfortunately, due to the high cost of IT infrastructure, there is not yet a storage facility in Poland that provides these services. We are working on getting our algorithms ready to work with these services. We encourage you to contact us and launch a pilot together.
We have built all of our algorithms to communicate seamlessly with weather service cloud systems, retrieve or forecast energy prices and determine a storage-specific strategy for the next few tens of hours. We are able to integrate our algorithms into almost any energy storage from almost any manufacturer. We provide our service either with cloud servers such as Google Cloud or Microsoft Azure or by hosting the algorithms on the customer's server.
Together with an electricity trading company, we are working on the development of a virtual power plant system, which, based on weather forecasts and energy price predictions, determines the optimum strategies for the operation of RES sources, the electricity consumption point, the charging/discharging of energy stores, and the monitoring and billing of energy use.
We have been focused on software development for the green energy transition since 2018. Since then, we have been developing software almost continuously for, among others, Coraba - the Polish PV market leader. In addition to this cooperation, we have algorithms developed for:
- monitoring energy consumption on industrial equipment,
- prediction of energy production from PV and wind,
- control of energy storage,
- prediction of prices on the Day-Ahead Market,
- big data analytics from thousands of PPE energy points,
- simulation of green hydrogen production facilities and much more.
We often act as an expert engineering and energy software house. On the basis of all our experience, we build bespoke software for the specific needs of the customer in question.
Bartosz Górecki, PhD – CEO/ Founder of QuickerSim
Mob: +48 503 444 886
E-mail: b(dot)gorecki(at)quickersim.com