Challenges to a full energy storage optimisation

A large proportion of the analyses of Energy Storage (ES) in electricity markets utilises linear and non-linear optimisation to evaluate possible returns for investors and impact on power system operation. While such formulations commonly include simplified characteristics of ES roundtrip efficiencies and self-discharge, the effects of storage operation on asset lifetime tends to be ignored. Sophisticated physical models are infeasible to incorporate into large-scale optimisation models from a computational point of view. However there is scope for significant improvements in the decision models by considering simplified representation of aging effects. This work proposes to include a cost function for battery degradation linked to a number of constraints to account for such effects in the ES scheduling.