Revenue Analysis of Stationary and Transportable Battery Storage for Power Systems with High Penetration of Renewable Sources: A Market Participant Perspective
The power system needs more transmission capacity to deal with the increasing integration of renewable energy resources. The battery energy storage systems (BESSs) are effective to enhance the grid capacity and relieve the transmission congestion. A comprehensive revenue analysis of BESSs is critical for market participants to install such systems in a market-based power system. Taking PJM as an example, this paper carries out a thorough revenue analysis for the entire system. Highly profitable nodes in the system are revealed and characterized for BESS participants. A comparison study of stationary and transportable BESSs shows the transportable energy storage can produce higher potential revenue in the energy and regulation markets. Based on the results of the revenue analysis and characterization of commercial pricing nodes, an optimal placement algorithm is proposed for finding the profitable sites for market participants to install BESSs in the system and the algorithm is validated with real PJM market data.
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…
Carbon-Driven Incentive Mechanism for Renewable Power-to-Ammonia Production in Coupled Carbon and Ammonia Markets
College of Electrical Engineering, Sichuan University（四川大学电气工程学院）；School of Statistics and Data Science, Southwestern University of Finance and Economics（西南财经大学统计与数据科学学院）；Harvard John A. Paulson School of Engineering and Applied Sciences, Harvard University（哈佛大学约翰·A·保尔森工程与应用科学学院）
Energy storage technologies are key to improving grid flexibility in the presence of increasing amounts of intermittent renewable generation. We propose an insurance contract that suitably compensates energy storage systems for providing flexibility. Such a contract provides a wider range of market opportunities for these systems while also incentivizing higher renewable penetration in the grid. We consider a day-ahead market in which generators, including renewables and storage owners, bid to be scheduled for the next operating day. Due to production uncertainty, renewable generators may be u…
As the demand for electricity and the need for power systems flexibility grow, it is crucial to exploit more reliable and clean sources of energy to produce electricity when needed most. Tidal lagoons generate renewable electricity by creating an artificial head difference between water levels on the seaside, driven by tides, and water levels inside the basin, controlled by flow through the structure. Depending on the level of seawater, power generation from a tidal lagoon can be controlled, i.e. shifting power generation in time. This paper aims to investigate the operation of a tidal lagoon …
We consider some crucial problems related to the secure and reliable operation of power systems with high renewable penetrations: how much reserve should we procure, how should reserve resources distribute among different locations, and how should we price reserve and charge uncertainty sources. These issues have so far been largely addressed empirically. In this paper, we first develop a scenario-oriented energy-reserve co-optimization model, which directly connects reserve procurement with possible outages and load/renewable power fluctuations without the need for empirical reserve requireme…
This paper studies the duopoly competition between renewable energy suppliers with or without energy storage in a local energy market. The storage investment brings the benefits of stabilizing renewable energy suppliers' outputs, but it also leads to substantial investment costs as well as some surprising changes in the market outcome. To study the equilibrium decisions of storage investment in the renewable energy suppliers' competition, we model the interactions between suppliers and consumers using a three-stage game-theoretic model. In Stage I, at the beginning of the investment horizon, s…
The intermittent nature of renewable energy resources such as wind and solar causes the energy supply to be less predictable leading to possible mismatches in the power network. To this end, hydrogen production and storage can provide a solution by increasing flexibility within the system. Stored hydrogen can either be converted back to electricity or it can be used as feed-stock for industry, heating for built environment, and as fuel for vehicles. This research examines the optimal strategies for operating integrated energy systems consisting of renewable energy production and hydrogen stora…
Reconfiguring flexibility in renewable power-to-ammonia systems using molten-salt thermal energy storage in the ammonia synthesis loop: A coordinated electro-hydrogen-thermal scheduling approach
College of Electrical Engineering, Sichuan University（四川大学电气工程学院）；School of Chemical Engineering, Sichuan University（四川大学化学工程学院）；School of Advanced Engineering, Great Bay University（大湾区大学先进工程学院）
Driven by the global decarbonization effort, the rapid integration of renewable energy into the conventional electricity grid presents new challenges and opportunities for the battery energy storage system (BESS) participating in the energy market. Energy arbitrage can be a significant source of revenue for the BESS due to the increasing price volatility in the spot market caused by the mismatch between renewable generation and electricity demand. In addition, the Frequency Control Ancillary Services (FCAS) markets established to stabilize the grid can offer higher returns for the BESS due to …
In this paper, an approach to evaluate the benefits of demand flexibility for Virtual Power Plants (VPPs) is presented. The flexible demands chosen in this study are part of a renewable energy source-based VPP that participates in Day-Ahead Market (DAM) and Intra-Day Market (IDM) and has dispatchable and non-dispatchable assets. A demand model with bi-level flexibility is proposed: the first level is associated with DAM, whereas the second level is related to IDM sessions. Simulations are carried out considering a 12-node network to ascertain the eventual impacts of modeling demand flexibility…
Redox Flow Batteries are a promising option for large-scale stationary energy storage. The vanadium redox flow battery is the most widely commercialized system thanks to its chemical stability and performance. This work aims to optimize the scheduling of a vanadium flow battery that stores energy produced by a renewable power plant, keeping into account a thorough characterization of the battery performance, with variable efficiencies and capacity fade effects. A detailed characterization of the battery performance improves the calculation of the optimal number of cycles and revenue associated…
We propose a new forward electricity market framework that admits heterogeneous market participants with second-order cone strategy sets, who accurately express the nonlinearities in their costs and constraints through conic bids, and a network operator facing conic operational constraints. In contrast to the prevalent linear-programming-based electricity markets, we highlight how the inclusion of second-order cone constraints improves uncertainty-, asset- and network-awareness of the market, which is key to the successful transition towards an electricity system based on weather-dependent ren…
A Statistical and Machine Learning Framework for Operational Threshold Detection and Deployable Dispatch Controller Development in Hydrogen Multi-Energy Systems
Antioch College（安提阿学院）；The Open University of Sri Lanka（斯里兰卡开放大学）
