A model of electricity market equilibrium with storages

Electricity markets are characterized by large price changes between peak periods with large consumption and night periods with low consumption. In this situation, an energy storage can play a useful role for the consumer: at low prices, the consumer stores energy in it, and uses it at high prices;...

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Bibliographic Details
Published in:Computational mathematics and modeling 2023, Vol.34 (1), p.63-74
Main Authors: Vasin, A. A., Agadzhanyan, E. G., Seregina, I. Yu
Format: Article
Language:English
Subjects:
Applications of Mathematics
Computational Mathematics and Numerical Analysis
Construction costs
Electric power demand
Electricity
Electricity distribution
Electricity pricing
Energy storage
Infrastructure
Mathematical Modeling and Industrial Mathematics
Mathematics
Mathematics and Statistics
Optimization
Parameters
Peak periods
Profits
Citations: Items that this one cites
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Summary:Electricity markets are characterized by large price changes between peak periods with large consumption and night periods with low consumption. In this situation, an energy storage can play a useful role for the consumer: at low prices, the consumer stores energy in it, and uses it at high prices; in those periods when he has a high need for energy. In this work, a mathematical model has been developed for calculating the optimal volumes of introducing different types of storages, as well as the optimal expansion of the power grid, based on the given structure of capacities and demand for electricity. A two-level market model is studied: the first level is intended for the analysis of short-term decision-making tasks by economic agents; the second level is for calculating the optimal infrastructure parameters. The parameters of storages and the transmission capacities are chosen based on maximizing the average values of the profits of corresponding economic agents. These profits are computed based on the first-level model, taking into account the costs of construction and the expected operating periods of infrastructure facilities.
ISSN:1046-283X
1573-837X
DOI:10.1007/s10598-024-09598-5