Estimating potential revenue from electrical energy storage in PJM

Byrne, Raymond H.; Concepcion, Ricky James; Silva-Monroy, Cesar A.

doi:10.1109/pesgm.2016.7741915

Cited by 65 publications

(31 citation statements)

References 5 publications

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“…11 Some studies co-optimize arbitrage with regulation, thus reducing the energy available for providing arbitrage services. Analysis performed by Byrne et al (2015) showed co-optimizing arbitrage with regulation on a system at times can generate negative arbitrage benefits due to energy being purchased to keep the storage system charged for regulation services. 12 Price volatility is another market parameter that contributes to varied results.…”

Section: Energy Arbitragementioning

confidence: 99%

Assigning value to energy storage systems at multiple points in an electrical grid

Balducci

Alam

Hardy

et al. 2018

Energy Environ. Sci.

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This article presents a taxonomy for assigning benefits to the services provided by energy storage systems (ESSs), defines approaches for monetizing the value associated with these services, assigns values to major ESS applications by region based on a review of an extensive set of literature, and summarizes and evaluates the capabilities of several tools currently used to estimate value for specific ESS deployments.

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Section: Energy Arbitragementioning

confidence: 99%

Assigning value to energy storage systems at multiple points in an electrical grid

Balducci

Alam

Hardy

et al. 2018

Energy Environ. Sci.

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“…An optimal bidding strategy across both DAM and RTM could also be attractive when both choices are available to the same optimization process [29,30]. Finally, the participation in the frequency regulation market as an addition to the energy arbitrage market should also increase the revenues [31].…”

Section: Discussionmentioning

confidence: 99%

Potential Arbitrage Revenue of Energy Storage Systems in PJM

et al. 2017

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Abstract:The volatility of electricity prices is attracting interest in the opportunity of providing net revenue by energy arbitrage. We analyzed the potential revenue of a generic Energy Storage System (ESS) in 7395 different locations within the electricity markets of Pennsylvania-New Jersey-Maryland interconnection (PJM), the largest U.S. regional transmission organization, using hourly locational marginal prices over the seven-year period 2008-2014. Assuming a price-taking ESS with perfect foresight in the real-time market, we optimized the charge-discharge profile to determine the maximum potential revenue for a 1 MW system as a function of energy/power ratio, or rated discharge duration, from 1 to 14 h, including a limited analysis of sensitivity to round-trip efficiency. We determined minimum potential revenue with a similar analysis of the day-ahead market. We presented the distribution over the set of nodes and years of price, price volatility, and maximum potential arbitrage revenue. From these results, we determined the breakeven overnight installed cost of an ESS below which arbitrage would be profitable, its dependence on rated discharge duration, its distribution over grid nodes, and its variation over the years. We showed that dispatch into real-time markets based on day-ahead market settlement prices is a simple, feasible method that raises the lower bound on the achievable arbitrage revenue.

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“…Regulation RMCCP Credit for k th hour is given as RMCCP k credit = η k perf G k RMCCP k . FERC order 755 provides the pay-for-performance in compensation design for regulating resources [22]. The RMPCP (USD/MWh) is used for calculating Regulation RMPCP Credit for hour index k, it is given as…”

Section: A Compensation Mechanismmentioning

confidence: 99%

Long-Term Revenue Estimation for Battery Performing Arbitrage and Ancillary Services

Hashmi

Labidi

Bušíć

et al. 2018

2018 IEEE International Conference on Communications, Control, and Computing Technologies for Smart Grids (SmartGridComm)

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Energy storage revenue estimation is essential for analyzing financial feasibility of investment in batteries. We quantify the cycles of operation considering depth-of-discharge (DoD) of operational cycles and provide an algorithm to calculate equivalent 100% DoD cycles. This facilitates in comparing cycles of different DoDs. The battery life is frequently defined as a combination of cycle and calendar life. We propose a battery capacity degradation model based on the cycle and the calendar life and operational cycles. Using equivalent 100% DoD cycles and revenue generated, we calculate the dollars per cycle revenue of storage performing electricity price based arbitrage and ancillary services for load balancing in real time. Using PJM's (a regional transmission organization in the United States) real data we calculate short term and long term financial potential for the year of 2017. We observe that participating in ancillary services is significantly more beneficial for storage owners compared to participating in energy arbitrage.

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Estimating potential revenue from electrical energy storage in PJM

Cited by 65 publications

References 5 publications

Assigning value to energy storage systems at multiple points in an electrical grid

Assigning value to energy storage systems at multiple points in an electrical grid

Potential Arbitrage Revenue of Energy Storage Systems in PJM

Long-Term Revenue Estimation for Battery Performing Arbitrage and Ancillary Services

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