Optimal Battery Bidding under Decision-Dependent State-of-Charge Uncertainties
The research investigated bidding strategies for Lithium Iron Phosphate (LFP) Battery Energy Storage Systems (BESS) by modeling State of Charge (SOC) uncertainty as an endogenous process. The authors compared three methods: fixed-margin, adaptive-margin, and uncertainty-aware optimization. The uncertainty-aware approach outperformed the others by treating the tightening margin as decision-dependent, leading to higher total revenue while maintaining reliable frequency reserve compliance.