Interest in sustainability has increased the share of variable renewable energy sources (VRES) in power generation. Energy storage systems' potential to mitigate intermittencies from non-dispatchable VRES has enhanced their appeal. However, the impacts of storage vary based on the owner and market conditions. We examine the policy implications of investments in utility-scale battery storage via a bi-level optimization model. The lower level depicts power system operations, modeled as either perfect competition or Cournot oligopoly to allow for the assessment of producer market power. The upper-level investor is either a welfare-maximizer or a profit-maximizing standalone merchant to reflect either welfare enhancement or arbitrage, respectively. We implement a realistic case study for Western Europe based on all possible size-location storage investment combinations. We find that market competition affects investment sizes, locations, and their profitability more than the investor's objectives. A welfare-maximizer under perfect competition invests the most in storage capacity. Consumers typically gain most from storage investments in all cases, exceeding the gains for the investors. Specifically, our results show that storage investments may either not occur or be located differently than at social optimum, if market power is exerted. Thus, policy makers need to anticipate producer market power when setting regulation.
Battery storage is expected to play a crucial role in the low-carbon transformation of energy systems. The deployment of battery storage in the power gird, however, is currently severely limited by its low economic viability, which results from not only high capital costs but also the lack of flexible and efficient utilization schemes and business models. Making utility-scale battery storage portable through trucking unlocks its capability to provide various on-demand services. We introduce the potential applications of utility-scale portable energy storage and investigate its economics in Cal…
This paper proposes a nondominated sorting genetic algorithm II (NSGA-II) based approach to determine optimal or near-optimal sizing and siting of multi-purpose (e.g., voltage regulation and loss minimization), community-based, utility-scale shared energy storage in distribution systems with high penetration of solar photovoltaic energy systems. Small-scale behind-the-meter (BTM) batteries are expensive, not fully utilized, and their net value is difficult to generalize and to control for grid services. On the other hand, utility-scale shared energy storage (USSES) systems have the potential t…
Time-of-use (ToU) pricing is widely used by the electricity utility. A carefully designed ToU pricing can incentivize end-users' energy storage deployment, which helps shave the system peak load and reduce the system social cost. However, the optimization of ToU pricing is highly non-trivial, and an improperly designed ToU pricing may lead to storage investments that are far from the social optimum. In this paper, we aim at designing the optimal ToU pricing, jointly considering the social cost of the utility and the storage investment decisions of users. Since the storage investment costs are …
Network-Security Informed Offer-Making of Aggregator with Utility-Owned Storage Lease Opportunity: Stochastic Stackelberg Game and Distributed Solution Methods
To accommodate the changes in the nature and pattern of electricity consumption with the available resources, utility companies have introduced a variety of rate structures over the years. This paper develops a comprehensive optimization method that addresses the diversity of utility rate structure of a commercial building. It includes a general set of constraints that can be used for any system with a building load, a renewable source, and a battery energy storage system (BESS). A cost function is formulated for each type of rate structure that can be exercised by a utility on a commercial bu…
Time-of-use (ToU) pricing is widely used by the electricity utility to shave peak load. Such a pricing scheme provides users with incentives to invest in behind-the-meter energy storage and to shift peak load towards low-price intervals. However, without considering the implication on energy storage investment, an improperly designed ToU pricing scheme may lead to significant welfare loss, especially when users over-invest the storage, which leads to new energy consumption peaks. In this paper, we will study how to design a social-optimum ToU pricing scheme by explicitly considering its impact…
Reductions in the cost of PV and batteries encourage households to invest in PV battery prosumage. We explore the implications for the rest of the power sector by applying two open-source techno-economic models to scenarios in Western Australia for the year 2030. Household PV capacity generally substitutes utility PV, but slightly less so as additional household batteries are installed. Wind power is less affected, especially in scenarios with higher shares of renewables. With household batteries operating to maximise self-consumption, utility battery capacities are hardly substituted. Wholesa…
In this paper, we aim to leverage peer to peer (P2P) transactive energy framework for optimal control of rooftop or neighborhood solar power with battery electric storage systems (BESS). Here we propose that the multiple neighboring customers would interconnect to form a community DC grid while still being connected to the main utility grid. The proposed infrastructure would (i) increase the resilience of the customers in case the utility grid becomes unavailable, (ii) reduce AC/DC conversion losses since a majority of the DER generation is in DC, and (iii) with the help of BESS, the customers…
Constant rise in energy consumption that comes with the population growth and introduction of new technologies has posed critical issues such as efficient energy management on the consumer side. That has elevated the importance of the use of renewable energy sources, particularly photovoltaic (PV) system and wind turbine. This work models and discusses design options based on the hybrid power system of grid and battery storage. The effects of installed capacity on renewable penetration (RP) and cost of electricity (COE) are investigated for each modality. For successful operation of hybrid pow…
Deep energy decarbonization cannot be achieved without high penetration of renewables. At higher renewable energy penetrations, the variability and intermittent nature of solar photovoltaic (PV) electricity can cause ramping issues with existing fossil fuel generation, requiring longer term energy storage to increase the reliability of grid operation. A proton exchange membrane electrolyzer can produce H2and serves as a utility controllable load. The produced H2 can then be stored and converted back into electricity, or mixed with natural gas, or used as transportation fuel, or chemical feedst…
Pricing storage operation in the real-time market under demand and generation stochasticities is considered. A scenario-based stochastic rolling-window dispatch model is formulated for the real-time market, consisting of conventional generators, utility-scale storage, and distributed energy resource aggregators. We show that uniform pricing mechanisms require discriminative out-of-the-market uplifts, making settlements under locational marginal pricing (LMP) discriminative. It is shown that the temporal locational marginal pricing (TLMP) that adds nonuniform shadow prices of ramping and state-…
Thanks to the unique advantages such as long life cycles, high power density, minimal environmental impact, and high power quality such as fast response and voltage stability, the flywheel/kinetic energy storage system (FESS) is gaining attention recently. There is noticeable progress made in FESS, especially in utility, large-scale deployment for the electrical grid, and renewable energy applications. This paper gives a review of the recent developments in FESS technologies. Due to the highly interdisciplinary nature of FESSs, we survey different design approaches, choices of subsystems, and …
A key obstacle to increasing renewable energy penetration in the power grid is the lack of utility-scale storage capacity. Transportation electrification has the potential to overcome this obstacle since Electric Vehicles (EVs) that are not in transit can provide battery storage as a service to the grid. This is referred to as EV-Power grid integration, and could potentially be a key milestone in the pathway to decarbonize the electricity and the transportation sectors. We first show that if EV-Power grid integration is not done carefully, then contrary to improving the cost efficiency of oper…
High penetration of plug-in electric vehicles (PEVs) can potentially put the utility assets such as transformer under overload stress causing decrease in their lifetime. The decrease in PV and battery energy storage system (BESS) prices has made them viable solutions to mitigate this situation. In this paper, the economic aspect of their optimal coordination is studied to assess transformer hottest spot temperature (HST) and loss of life. Monte Carlo simulation is employed to provide synthetic data of PEVs load in a residential complex and model their stochastic behavior. For load, temperature…
The recent decrease in battery manufacturing costs stimulates the market participation of utility-scale battery energy storage systems (BESSs). However, battery degradation remains a major concern for BESS owners while determining their BESS investment and operation strategies. This paper studies the impact of battery degradation on BESS's operation and revenue/cost in real-time energy, reserve, and pay as performance regulation markets. Comparative case studies are performed on two optimization frameworks which model the participation of a price-maker BESS in energy and ancillary services mar…
Motivated by the need of assessing the optimal allocation of battery energy storage services across various markets and the corresponding impact on market operations, an optimization framework is proposed in this work to coordinate the operation of an independent utility-scale price-maker battery energy storage system (BESS) in the energy, spinning reserve and performance-based regulation markets. The entire problem is formulated as a bi-level optimization process, where the structure of all markets is modeled considering the joint operation limits. The strategic bidding behavior of a price-ma…
In February 2021, an unprecedented winter storm swept across the U.S., severely affecting the Texas power grid, leading to more than 4.5 million customers' electricity service interruption. This paper assesses the load shedding experienced by customers under realistic scenarios in the actual power grid. It also conducts a preliminary study on using energy storage and load rationing to mitigate rotating blackout's adverse impact on the grid. It is estimated that utility-scale battery storage systems with a total installed capacity of 920 GWh would be required to fully offset the load shedding d…
This paper presents a trajectory tracking control strategy that modulates the active power injected by geographically distributed inverter-based resources to support transient stability. Each resource is independently controlled, and its response drives the local bus voltage angle toward a trajectory that tracks the angle of the center of inertia. The center-of-inertia angle is estimated in real time from wide-area measurements. The main objectives are to stabilize transient disturbances and increase the amount of power that can be safely transferred over key transmission paths without loss of…
Frequency response and voltage support are vital ancillary services for power grids. In this paper, we design and experimentally validate a real-time control framework for battery energy storage systems (BESSs) to provide ancillary services to power grids. The objective of the control system is to utilize the full capability of the BESSs to provide ancillary services. We take the voltage-dependent capability curve of the DC-AC converter and the security requirements of BESSs as constraints of the control system. The initial power set-points are obtained based on the droop control approach. To …
Distribution grids across the world are undergoing profound changes due to advances in energy technologies. Electrification of the transportation sector and the integration of Distributed Energy Resources (DERs), such as photo-voltaic panels and energy storage devices, have gained substantial momentum, especially at the grid edge. Transformation in the technological aspects of the grid could directly conflict with existing distribution utility retail tariff structures. We propose a smart meter data-driven rate model to recover distribution network-related charges, where the implementation of t…
Supported by the technical development of electric battery and charging facilities, plug-in electric vehicle (PEV) has the potential to be mobile energy storage (MES) for energy delivery from resourceful charging stations (RCSs) to limited-capacity charging stations (LCSs). In this paper, we study the problem of using on-road PEVs as MESs for energy compensation service to compensate charging station (CS) overload. A price-incentive scheme is proposed for power system operator (PSO) to stimulate on-road MESs fulfilling energy compensation tasks. The price-service interaction between the PSO an…
There is a pressing need for a transition from fossil fuel to renewable energy to meet the increasing energy demands and reduce greenhouse gas (GHG) emissions. The Himalayas possess substantial renewable energy potential that can be harnessed through hydropower projects due to its peculiar topographic characteristics and abundant water resources. However, the current exploitation rate is low owing to the predominance of run-of-river hydropower systems to support the power system. The utility-scale storage facility is crucial in the load scenario of an integrated power system to manage diurnal …
Sharing economy has become a socio-economic trend in transportation and housing sectors. It develops business models leveraging underutilized resources. Like those sectors, power grid is also becoming smarter with many flexible resources, and researchers are investigating the impact of sharing resources here as well that can help to reduce cost and extract value. In this work, we investigate sharing of energy storage devices among individual households in a cooperative fashion. Coalitional game theory is used to model the scenario where utility company imposes time-of-use (ToU) price and net m…
The problem of pricing utility-scale energy storage resources (ESRs) in the real-time electricity market is considered. Under a rolling-window dispatch model where the operator centrally dispatches generation and consumption under forecasting uncertainty, it is shown that almost all uniform pricing schemes, including the standard locational marginal pricing (LMP), result in lost opportunity costs that require out-of-the-market settlements. It is also shown that such settlements give rise to disincentives for generating firms and storage participants to bid truthfully, even when these market pa…
We give the definition of s-Vector control by using the complex power vector in the p-q plane to quantify the feasible operational region of battery energy storage system (BESS) and to find the optimal power set-point solution. The s-Vector control features in the avoidance of using costly optimization solvers to solve optimization models online which is also an execution time bottleneck in real-time control. The advantages of s-Vector control are fast and stable computational efficiency. We validate a s-Vector based real-time controller of BESS to provide frequency response and voltage suppor…
This paper presents mixed integer linear programming (MILP) formulations to obtain optimal sizing for a battery energy storage system (BESS) and solar generation system in an extreme fast charging station (XFCS) to reduce the annualized total cost. The proposed model characterizes a typical year with eight representative scenarios and obtains the optimal energy management for the station and BESS operation to exploit the energy arbitrage for each scenario. Contrasting extant literature, this paper proposes a constant power constant voltage (CPCV) based improved probabilistic approach to model …
Distributed Economic Dispatch Scheme of A BESS Network with A Switching Utility Grid in Energy Internet Paradigm via Reset Consensus Method
College of Electrical Engineering, Zhejiang University（浙江大学电气工程学院）；College of Artificial Intelligence, Nankai University（南开大学人工智能学院）；Hainan Institute, Zhejiang University（浙江大学海南研究院）
Battery energy storage systems (ESS) are widely used in microgrids to complement high renewables. However, the real-time energy management of microgrids with battery ESS is challenging in two aspects: 1) the evolution process of battery energy level is across-time coupled; 2) uncertainties unavoidably arise in the forecasting process for renewable generation. In this paper, a tube-based model predictive control (MPC) approach is innovatively proposed in accommodating the real-time energy management of microgrids with battery ESS. Firstly, a real-time operation model of battery, including the d…
Microgrid (MG) system, which is composed of renewable resources with the utility grid, energy storage unit, electric vehicles, and loads, acts as a single controllable entity. To get efficient and low-cost energy, need to manage power flow within MG depending on renewable resources and load demand. This paper proposes an energy management system (EMS) for grid-connected photovoltaic (PV) and energy storage system (ESS) based on AC MG. The proposed EMS regulates power flow through the AC bus considering next-day solar irradiance prediction, tariff profile, and day-ahead load demand to minimize …
The increasing penetration of intermittent renewables, storage devices, and flexible loads is introducing operational challenges in distribution grids. The proper coordination and scheduling of these resources using a distributed approach is warranted, and can only be achieved through local retail markets employing transactive energy schemes. To this end, we propose a distribution-level retail market operated by a Distribution System Operator (DSO), which schedules DERs and determines the real-time distribution-level Locational Marginal Price (d-LPM). The retail market is built using a distrib…
Keele University（基尔大学）；Luxembourg Institute of Science and Technology（卢森堡科学技术研究院）
In this paper, multi-agent reinforcement learning is used to control a hybrid energy storage system working collaboratively to reduce the energy costs of a microgrid through maximising the value of renewable energy and trading. The agents must learn to control three different types of energy storage system suited for short, medium, and long-term storage under fluctuating demand, dynamic wholesale energy prices, and unpredictable renewable energy generation. Two case studies are considered: the first looking at how the energy storage systems can better integrate renewable energy generation unde…
