A Computational Framework for Energy Storage Participation in Transmission Planning with Electricity Market Participation

Abstract

from the HydroWIRES program at WPTO, for sponsoring the project and providing valuable feedbacks.We also acknowledge the contributions of our partners on this project: Jeremy Twitchell of Pacific Northwest National Laboratory, who have assisted in developing this work with principles of energy storage dual-use in transmission services and market participation identified in a separated project report.Additionally, we acknowledge and appreciate the feedback and insightful comments provided throughout this project by many others, including David Kates of Nevada Hydro, Ziad Alaywan of ZGlobal Inc., Kun Zhu of the Midcontinent Independent System Operator (MISO), and Parag Mitra of the Electric Power Research Institute. We are deeply grateful to these individuals for lending their time and expertise to help the team better understand the impediments to dual-use storage and think through the potential implications of different approaches. The conclusions presented in this report are solely the responsibility of the authors. HydroWIRESIn April 2019, WPTO launched the HydroWIRES Initiative 1 to understand, enable, and improve hydropower and pumped storage hydropower's (PSH's) contributions to reliability, resilience, and integration in the rapidly evolving U.S. electricity system. The unique characteristics of hydropower, including PSH, make it well suited to provide a range of storage, generation flexibility, and other grid services to support the cost-effective integration of variable renewable resources.The U.S. electricity system is rapidly evolving, bringing both opportunities and challenges for the hydropower sector. While increasing deployment of variable renewables such as wind and solar have enabled low-cost, clean energy in many U.S. regions, it has also created a need for resources that can store energy or quickly change their operations to ensure a reliable and resilient grid. Hydropower (including PSH) is not only a supplier of bulk, low-cost, renewable energy but also a source of large-scale flexibility and a force multiplier for other renewable power generation sources. Realizing this potential requires innovation in several areas: understanding value drivers for hydropower under evolving system conditions, describing flexible capabilities and associated tradeoffs associated with hydropower meeting system needs, optimizing hydropower operations and planning, and developing innovative technologies that enable hydropower to operate more flexibly.

An Enhanced Computational Framework for Energy Storage Participation in Transmission Planning with Electricity Market Participation: Dynamic Market Participation Restriction Estimation

“…In the previous study and report 2 , we developed a computational framework to explore the technical and economic viability of the dual use of pumped storage hydropower (PSH) for both transmission assets and market participation. The rationale for the dual-use application is to improve the resource utilization rate and reduce the cost recovery burden.…”

“…As a case study, the extended framework is tested on the Western Electricity Coordinating Council (WECC), with the same PSH site considered in the previous study 2 . The case study shows that by using dynamic determination of transmission services, the PSH project's revenue from market participation significantly increases, and the payback period is greatly shortened compared to pre-defined rule-based transmission service determination method, while its needs as a transmission asset are not jeopardized during the period when the served transmission line is at risk.…”

“…In this project, extended from the previous work [2], we further investigate the technical operation and economic feasibility of the dual use of a PSH plant as a transmission asset and market participant. We propose a computational framework for the transmission operator to dynamically determine the start time and duration of the TSP and the minimum SOC required at the beginning of the TSP based on the system reliability conditions forecast.…”

“…Therefore, an accurate estimate of the obligation specification can improve the system's reliability and allow the PSH plant to participate in a market with necessary and certain information. In the previous study [2], the obligation parameters are fixed for each day. For example, a PSH plant is not allowed to participate in a market from 4 pm to 8 pm every day and should have 80% of its SOC at the beginning of this period to serve as a transmission asset.…”

“…To validate the performance, we conduct a techno-economic study for the same PSH plant described in [2], which receives transmission service obligation requirements estimated by the proposed approach before a day-ahead (DA) market is closed.…”