Evaluation of the effects of frequency restoration reserves market participation with photovoltaic battery energy storage systems and power-to-heat coupling

Abstract In central Europe, the number of photovoltaic battery storage systems is steadily growing. Combined with a heat pump for power-to-heat coupling, these storage systems can contribute to sector coupling and increase the use of renewable energies in private households. The growing share of renewable energies leads to further fluctuations in the grid and a growing demand for reserve power. Integrated homes that combine a photovoltaic battery storage system with power-to-heat coupling can contribute to providing control reserve. The frequency restoration reserve in central Europe is divided into a negative and a positive reserve market, enabling market opportunities for integrated homes. Integrated homes participating in the negative frequency restoration reserve market could benefit from energy at low costs. Therefore, integrated homes profit from the additional flexibility provided by the heating sector. Low-cost energy from dual-use operation could lead to enhanced economics of integrated homes, especially during the winter. This paper presents the calculation of the marginal costs and savings for the market participation and the resulting economic influence on integrated homes. Costs for additional battery aging, as well as savings for reduced domestic energy consumption from the grid and an enhanced feed-in, are taken into account. The results show that participation in the German frequency restoration reserve market could reduce the annual costs for heat and electricity of integrated homes by up to 14.5%. A dual-use operation could be beneficial for integrated homes and enhance their market penetration.