Smart Grid Seminar: Dynamic Operation and Lifetime Valuation for Batteries in Markets
This talk introduces a generalized framework for valuating batteries based on their degradation mechanism and market signals. The proposed framework follows a dynamic programming approach, and novel solution algorithms are designed to accurately model years of battery degradation accumulation, while simulating high granularity optimal control for batteries over time resolutions of minutes or even seconds, including the capability to model stochastic operations. Results from this research will provide pricing and operation references for new and used batteries in grid-interactive applications, and demonstrate how batteries of different degradation mechanisms should be priced differently.