Treffer: Optimizing Residential Battery Energy Storage Systems Across Frequency Regulation Markets and Energy Arbitrage : Price Forecasting-Driven Battery Scheduling for Participation in Swedish Frequency Containment Reserve Markets ; Optimering av hushållsbatterier för frekvensreglering och elprisarbitrage : Batterischemaläggning baserad på prisprognoser för deltagande i svenska FCR-marknader

This thesis addresses the optimization of Battery Energy Storage System (BESS) fleets participating simultaneously in Swedish Frequency Containment Reserve (FCR-N, FCR-D Up, FCR-D Down) markets and energy arbitrage. A Mixed-Integer Linear Programming (MILP) model is developed to determine the optimal hourly battery scheduling, considering BESS technical limitations (state of charge, power capacity, efficiency), specific Swedish Frequency Containment Reserve (FCR) market regulations for Limited Energy Resources (LER), and the cost of battery degradation through cycling. As FCR market bids are placed before prices are finalized, the study also develops and evaluates price forecasting models, including ARIMA and simpler baselines, to provide necessary input for the optimization under realistic conditions. Using historical market data from February to December 2024, simulations show that the proposed multi-market optimization strategy significantly increases potential revenue (up to +34.8% under perfect foresight) compared to baseline single-market strategies, such as participating only in Frequency Containment Reserve - Disturbance (FCR-D) markets. Frequency regulation services, particularly FCR-D, are identified as the dominant revenue source, with energy arbitrage offering negligible returns during the study period. Even with imperfect price forecasts, the optimization approach yields revenue gains (+3.7% to +12.0%) over the baseline of only participating in FCR-D, demonstrating practical viability. Furthermore, the analysis indicates that incorporating degradation costs effectively limits battery wear without substantial profit reduction, and heuristic charging constraints can mitigate impacts on the newly introduced household power tariffs of Sweden, while maintaining high net earnings. This research provides a framework for optimally managing residential BESS fleets, enhancing their profitability and contribution to grid stability through intelligent multi-market participation driven by price forecasts. ...