PV - BESS Revenue Split Estimation

In this article, we present the estimation of revenue split between photovoltaic (PV) systems and battery energy storage systems (BESS).

Key Assumptions

  1. Ancillary Revenues: All ancillary revenues, such as those from frequency containment reserves (FCR) and automatic frequency restoration reserves (aFRR), are attributed entirely to the BESS. This is because these services are typically provided by the storage system.
  2. Energy Transactions: The BESS purchases power from the PV system at zero cost, reflecting the internal transfer of energy within the hybrid system.

Revenue Calculation Methodology

The revenue split is determined using the following steps:

  1. BESS Revenue from Energy Markets:
    • For each market (e.g., day-ahead energy and intraday continuous hourly energy), the revenue is calculated based on the volume of energy traded to or from the BESS.
    • Only the energy directly associated with the BESS is considered, ensuring accurate attribution.
  2. Ancillary Service Revenues:
    • Revenues from ancillary services, such as capacity and energy payments for aFRR, mFRR, and FCR, are summed and fully allocated to the BESS.
  3. PV Revenue:
    • The total system revenue is calculated, and the BESS revenue is subtracted to determine the PV revenue.
    • This is done to ensure only the power sold to the market has a revenue associated with it.
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