Robust self-scheduling of a price-maker energy storage facility in the New York electricity market

Abstract

Recent progress in energy storage raises the possibility of creating large-scale storage facilities at lower costs. This may bring economic opportunities for storage operators, especially via energy arbitrage. However, storage operation in the market could have a noticeable impact on electricity prices. This work aims at evaluating jointly the potential operating profit for a price-maker storage facility and its impact on the electricity prices in the New York state market. Based on historical data, lower and upper bounds on the supply curve of the market are constructed. These bounds are used as an input for the robust self-scheduling problem of a price-maker storage facility. Our computational experiments show that the robust strategies thus obtained allow to reduce significantly the loss exposure while maintaining reasonably high expected profits.

The Value of Coordination in Multimarket Bidding of Grid Energy Storage

“…The Value of Coordination in Multi-Market Bidding of Grid Energy Storage multiple times. As opposed to Barbry et al (2019) who evaluate a price-maker storage and its impact on day-ahead prices in the New York electricity market, we model storage as price-taker in the day-ahead market but recognize the price impact of large orders in the intraday market.…”

Price and subsidy under uncertainty: Real-option approach to optimal investment decisions on energy storage with solar PV

“…17 There exists some literatures analyzing investment feasibility of solar PV or wind generation under single SMP volatility, but not many studies analyzed investment feasibility of energy storage with thorough consideration of multiple volatility of SMP and REC price. 18 This study focus on energy storage technology collocated with solar power farms, which can contribute to effectively mitigate the reliability problem caused by variability and intermittency of renewable sources in the power system. 19 Two uncertainties in electricity price and REC price are considered, and estimated optimal investment price for varying volatility levels for REC price.…”

“…Now we can use two boundary conditions, which are the value-matching condition and the smooth-pasting condition, shown in equations ( 17) and (18), to find the unknown variables A, b; and g in equation ( 16). The optimal investment price of P 1 and P 2 that makes an investment valid will be determined once those unknown variables are estimated (Dixit and Pindyck 24 ) Value-matching condition:…”

Economies of Scope for Electricity Storage and Variable Renewables

“…The ability to profit from gaming the market in this way increases with the capacities of the respective firms. Hence, if players have market power, controlling more assets and therefore more capacities can be an advantage that potentially makes joint planning more profitable than separate planning [62].…”