Ensuring profitability of energy storage

Energy storage (ES) is a pivotal technology for dealing with the challenges caused by the integration of renewable energy sources. It is expected that a decrease in the capital cost of storage will eventually spur the deployment of large amounts of ES. These devices will provide transmission service...

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Bibliographic Details
Main Authors: Pandzic, Hrvoje, Dvorkin, Yury, Kirschen, Daniel, Fernandez-Blanco, Ricardo, Watson, Jean-Paul, Silva-Monroy, Cesar
Format: Conference Proceeding
Language:English
Subjects:
Computer science
Electrical engineering
Energy storage
Investment
Power systems
Profitability
Spatiotemporal phenomena
Online Access:Request full text
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Summary:Energy storage (ES) is a pivotal technology for dealing with the challenges caused by the integration of renewable energy sources. It is expected that a decrease in the capital cost of storage will eventually spur the deployment of large amounts of ES. These devices will provide transmission services, such as spatiotemporal energy arbitrage, i.e., storing surplus energy from intermittent renewable sources for later use by loads while reducing the congestion in the transmission network. This paper proposes a bilevel program that determines the optimal location and size of storage devices to perform this spatiotemporal energy arbitrage. This method aims to simultaneously reduce the system-wide operating cost and the cost of investments in ES while ensuring that merchant storage devices collect sufficient profits to fully recover their investment cost. The usefulness of the proposed method is illustrated using a representative case study of the ISO New England system with a prospective wind generation portfolio.
ISSN:1944-9933
DOI:10.1109/PESGM.2017.8274284