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Optimal Spot Market Participation of PV + BESS: Impact of BESS Sizing in Utility-Scale and Distributed Configurations

Andrea Scrocca, Roberto Pisani, Diego Andreotti, Giuliano Rancilio (), Maurizio Delfanti and Filippo Bovera
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Andrea Scrocca: Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy
Roberto Pisani: Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy
Diego Andreotti: Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy
Giuliano Rancilio: Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy
Maurizio Delfanti: Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy
Filippo Bovera: Department of Energy, Politecnico di Milano, Via Lambruschini 4a, 20156 Milan, Italy

Energies, 2025, vol. 18, issue 14, 1-32

Abstract: Recent European regulations promote distributed energy resources as alternatives to centralized generation. This study compares utility-scale and distributed photovoltaic (PV) systems coupled with Battery Energy-Storage Systems (BESSs) in the Italian electricity market, analyzing different battery sizes. A multistage stochastic mixed-integer linear programming model, using Monte Carlo PV production scenarios, optimizes day-ahead and intra-day market offers while incorporating PV forecast updates. In real time, battery flexibility reduces imbalances. Here we show that, to ensure dispatchability—defined as keeping annual imbalances below 5% of PV output—a 1 MW PV system requires 220 kWh of storage for utility-scale and 50 kWh for distributed systems, increasing the levelized cost of electricity by +13.1% and +1.94%, respectively. Net present value is negative for BESSs performing imbalance netting only. Therefore, a multiple service strategy, including imbalance netting and energy arbitrage, is introduced. Performing arbitrage while keeping dispatchability reaches an economic optimum with a 1.7 MWh BESS for utility-scale systems and 1.1 MWh BESS for distributed systems. These results show lower PV firming costs than previous studies, and highlight that under a multiple-service strategy, better economic outcomes are obtained with larger storage capacities.

Keywords: PV firming; BESS sizing; power imbalance; stochastic optimization; PV scenario generation; distributed energy resources; Italian electricity market (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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