The rise of Distributed Energy Resources (DER) cause more uncertainty for the Balance Responsible Party (BRP) with regards to precise forecasting of supply and demand. In case of an imbalance, ancil- lary services have to be activated resulting in monetary deviation penalties for the respective BRP. The implementation of reliable communication technology enables the use of aggregated flexibility, utilising smart industrial and residential applications, heating systems, electric vehicles, distributed generation and energy storage. This work analyses the use case of centralised Lithium-Ion battery providing flexibility for BRPs. The analysis was conducted using Spanish electricity market data and real imbalance data from the year 2017. The model developed in this work integrates battery cycle aging using a piecewise linear cost function. This approach provides a close approximation of the battery degradation mechanism of electrochemical batteries and can be incorporated easily into existing market dispatch programs with short time window. Having battery degradation implemented in the decision making reveals a more considerate operation of the battery, which prolongs the battery’s lifetime and improves the project’s profitability. Moreover, the analysis revealed that the Lithium-Ion Titanate (LTO) chemistry performs the best from an operational and project-based perspective. Eventually, the business case of usin ng centralised battery flexibility for deviation management using the example of Spain was assessed and concluded to be insufficient to reach break-even for the investment
