  This paper investigates the usage of battery storage systems in a fast
charging station (FCS) for participation in energy markets and charging
electrical vehicles (EVs) simultaneously. In particular, we focus on optimizing
the scheduling strategies to reduce the overall operational cost of the system
over its lifetime by combining the model of battery degradation and energy
arbitrage. We implement the battery degradation as a penalty term within an
energy arbitrage model and show that the battery degradation plays an important
role in the optimal energy dispatch scheduling of the FCS system. In this case
study, with different penalty coefficients for the battery degradation penalty
term, it is found that including the penalty of battery usage in the scheduling
model will reduce the number of small charging/discharging cycles, thereby
prolonging the battery lifetime, while maintaining near optimal revenue from
grid services.
