Effect of Operating Strategies on the Longevity of Lithium-ion Battery Energy Storage Systems

Batteries are increasingly becoming a more viable form of grid-level energy storage as time progresses. Among the different types of batteries present, Li-ion batteries have particularly gained widespread popularity due to their high energy density, high efficiency and decreasing costs. This paper presents a detailed study on maximizing the monetary benefits from a Li-ion Battery Energy Storage System (BESS) for a number of applications, considering the BESS degradation process. The BESS is assumed to be participating in the energy market and is also being applied to supply critical loads when outage events occur to improve the resilience and reliability of the power system. Different operating strategies are tested and the results can be summarized into several suggestions on how to optimally operate the battery while performing energy arbitrage, enhancing system resilience and reliability, and also inhibiting the degradation of the battery.