Economic Optimization of Battery Storage for Power Ramp- Rate Control and Energy Arbitrage in PV and Wind Power Systems
- 1Department of Electrical Engineering, Universidad de Zaragoza, 50018 Zaragoza, Spain
Abstract
With the increasing renewable penetration in electrical grids, high power ramp rates can lead to grid instability. Power ramp-rate control (PRRC) requirements are being implemented in an increasing number of countries, with penalties for non-compliance. While curtailment and power reservation enable ramp-rate control without energy storage, they inherently decrease the grid-injected energy and generation revenue. Battery storage avoids these drawbacks while reducing violations, and can also be used for arbitrage to increase profitability. This study proposes a simulation-based optimization framework to maximize the net present value (NPV) of battery storage integrated into PV, wind, and hybrid PV–wind systems under two distinct penalty schemes. A battery-based PRRC is compared with curtailment and power reserve strategies, revealing that battery storage yields the highest NPV and the fewest ramp-rate violations. Using Spain’s 2025 hourly electricity market prices and current utility-scale battery costs, the system with an LTO (high C-rate) battery-based PRRC under a 10%/min ramp-rate limit achieves an NPV comparable to the unconstrained case. Battery arbitrage under these conditions is not worthwhile, as the NPV improvement is negligible. Under a hypothetical stretched price scenario (average price: 102.9 EUR/MWh; average daily spread: 232.1 EUR/MWh), energy arbitrage using an LFP battery (low C-rate) becomes highly profitable. Relative to the unconstrained baseline, this strategy yields net present value (NPV) improvements of 17% for the wind system and 28% for the hybrid PV–wind system. Furthermore, the NPV for the PV system shifts from −2 million EUR to 6 million EUR, demonstrating that arbitrage viability depends heavily on market price volatility.
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BibTeX
@article{dufolopez2026economic,
title = {{Economic Optimization of Battery Storage for Power Ramp- Rate Control and Energy Arbitrage in PV and Wind Power Systems}},
author = {Rodolfo Dufo-López and Juan M. Lujano-Rojas and José L. Bernal-Agustín},
journal = {Batteries},
year = {2026},
month = oct,
doi = {10.3390/batteries12100435},
url = {https://www.mdpi.com/2313-0105/12/10/435},
note = {CC BY 4.0},
}
RIS
TY - JOUR
TI - Economic Optimization of Battery Storage for Power Ramp- Rate Control and Energy Arbitrage in PV and Wind Power Systems
AU - Rodolfo Dufo-López
AU - Juan M. Lujano-Rojas
AU - José L. Bernal-Agustín
PY - 2026
DA - 2026/10/16
JO - Batteries
DO - 10.3390/batteries12100435
UR - https://www.mdpi.com/2313-0105/12/10/435
AB - With the increasing renewable penetration in electrical grids, high power ramp rates can lead to grid instability. Power ramp-rate control (PRRC) requirements are being implemented in an increasing number of countries, with penalties for non-compliance. While curtailment and power reservation enable ramp-rate control without energy storage, they inherently decrease the grid-injected energy and generation revenue. Battery storage avoids these drawbacks while reducing violations, and can also be used for arbitrage to increase profitability. This study proposes a simulation-based optimization framework to maximize the net present value (NPV) of battery storage integrated into PV, wind, and hybrid PV–wind systems under two distinct penalty schemes. A battery-based PRRC is compared with curtailment and power reserve strategies, revealing that battery storage yields the highest NPV and the fewest ramp-rate violations. Using Spain’s 2025 hourly electricity market prices and current utility-scale battery costs, the system with an LTO (high C-rate) battery-based PRRC under a 10%/min ramp-rate limit achieves an NPV comparable to the unconstrained case. Battery arbitrage under these conditions is not worthwhile, as the NPV improvement is negligible. Under a hypothetical stretched price scenario (average price: 102.9 EUR/MWh; average daily spread: 232.1 EUR/MWh), energy arbitrage using an LFP battery (low C-rate) becomes highly profitable. Relative to the unconstrained baseline, this strategy yields net present value (NPV) improvements of 17% for the wind system and 28% for the hybrid PV–wind system. Furthermore, the NPV for the PV system shifts from −2 million EUR to 6 million EUR, demonstrating that arbitrage viability depends heavily on market price volatility.
SN - 2313-0105
ER -