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Techno-economic assessment, sizing and optimisation of hybrid photovoltaic and battery energy storage solutions
The project aimed to assess the hybridisation potential of a portfolio of small-scale photovoltaic generation assets through the integration of Battery Energy Storage Systems, or BESS. The study covered a set of installations with different capacities, technical configurations, grid-connection conditions and aggregation possibilities, with the objective of identifying suitable solutions to increase operational flexibility and maximise the long-term value of the assets.
R&D Nester developed an integrated sizing and optimisation methodology that considered photovoltaic generation, battery power and energy capacity, round-trip efficiency, equipment degradation, investment and operating costs, equipment replacement requirements, and the applicable technical and regulatory constraints.
Different market-participation strategies were analysed, including energy sales in the day-ahead and intraday markets, energy arbitrage and the provision of system services, particularly through aFRR and mFRR products. The assessment also considered different scenarios for the evolution of electricity prices, balancing-service prices, imbalance costs, market volatility and negative-price periods. This enabled the performance of the portfolio to be evaluated under a range of possible future market conditions.
The work included the simulation of the optimal operation of each site and of different asset clusters over a 35-year assessment horizon. Potential revenues, lifecycle costs, investment requirements, optimal battery sizes, indicative footprint requirements and economic-performance indicators were estimated for the different technical and market configurations.
The methodology supports renewable-energy developers, investors and asset owners in comparing hybridisation alternatives, identifying revenue-stacking opportunities and defining suitable strategies for participation in energy and flexibility markets. The results provide a technical basis for investment prioritisation, business-model assessment and the evaluation of battery-storage integration in renewable-energy portfolios.
This type of study can be adapted to portfolios with different technologies, capacities, market-access conditions and investment assumptions, supporting informed decisions on storage sizing, asset aggregation, market positioning and long-term commercial strategy.
