Estimating the value of electricity storage in an energy-only wholesale market

McConnell, Dylan; Forcey, Tim; Sandiford, Mike

doi:10.1016/j.apenergy.2015.09.006

Cited by 100 publications

(60 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The figures from this section show that the potential arbitrage revenue during cold weather events and during negative prices with high price volatility has greater potential than the average. Recently, a similar finding has also been reported in the literature [12]. The ESS would provide an analogous service to peak generators and would also depend on extreme price events.…”

Section: Daily Analysis Of Potential Revenuesupporting

confidence: 64%

Potential arbitrage revenue of energy storage systems in PJM during 2014

Salles

Aziz

Hogan

2016

2016 IEEE Power and Energy Society General Meeting (PESGM)

View full text Add to dashboard Cite

show abstract

Section: Daily Analysis Of Potential Revenuesupporting

confidence: 64%

Potential arbitrage revenue of energy storage systems in PJM during 2014

Salles

Aziz

Hogan

2016

2016 IEEE Power and Energy Society General Meeting (PESGM)

View full text Add to dashboard Cite

show abstract

“…The cold weather in the beginning of 2014 (between 1 January and 28 February) was probably responsible for 38% of the year's total revenue. Recently, a similar finding has also been reported by McConnell et al [19]. The ESS would provide an analogous service to peak generators and would also depend on extreme price events for a significant amount of its revenue.…”

Section: Seasonality Of Revenue In Pjmsupporting

confidence: 63%

Potential Arbitrage Revenue of Energy Storage Systems in PJM

et al. 2017

View full text Add to dashboard Cite

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.

show abstract

“…As an emerging technology to support the cost-efficient integration of renewable energy, energy storage (ES) has attracted extensive research to investigate its role and value in the future low carbon electricity system. Previous studies analyse the value of ES in US [1], Europe [2] and Australia [3] to perform energy arbitrage by storing low-cost electricity during periods of low net demand and releasing back to the grid during periods of high net demand. While authors in [4,5] demonstrate the increased value of ES by providing both energy arbitrage and ancillary services.…”

Section: Introductionmentioning

confidence: 99%

Business cases for energy storage with multiple service provision

Teng

Štrbac

2016

J. Mod. Power Syst. Clean Energy

View full text Add to dashboard Cite

Energy storage (ES) has been considered as the key source of flexibility to support the integration of renewable energy. Previous studies have demonstrated the substantial system cost savings by the deployment of ES, including both investment and operation of generation, transmission and distribution infrastructure. However, this societal benefit may not be realized if industry actors do not have a viable business case to appropriately capture these multiple value streams. In this context, this paper investigates the value that ES may deliver to its owner over two specific business cases in a 2030 UK system. Firstly, the application of large-scale ES in the wholesale market is analysed. It is demonstrated that the optimal allocation of ES to provide multiple services is the key element for ES to become competitive in the electricity market. In the second business case, this paper analyses the value of kilowattscale ES combined with roof photovoltaic (PV) system in the household and community level. The study shows that multiple service provision of ES through advanced pricing schemes, for example time-of-use (ToU) tariff and dynamic distribution use of system (DUoS), lead to higher value and the coordination in the community level could further justify the application of domestic ES.

show abstract

Estimating the value of electricity storage in an energy-only wholesale market

Cited by 100 publications

References 22 publications

Potential arbitrage revenue of energy storage systems in PJM during 2014

Potential arbitrage revenue of energy storage systems in PJM during 2014

Potential Arbitrage Revenue of Energy Storage Systems in PJM

Business cases for energy storage with multiple service provision

Contact Info

Product

Resources

About