Affiliation:
1. School of Engineering and Design Technical University of Munich Munich Germany
Abstract
AbstractWith large‐scale integration of renewable generation, energy storage is expected to play an important role in providing flexibility to energy systems. In this paper, the authors construct a trilevel Stackelberg game model to study the co‐investment of merchant and regulated storage in energy and reserve markets. The upper‐level problem is a profit‐maximizing storage investment problem with a desired rate‐of‐return solved by a merchant investor. In the middle‐level problem, the system operator (SO) makes regulated storage investment decisions to minimize system cost. In the lower‐level problem, the SO clears energy and reserve markets. The proposed model captures interactions of regulated and merchant storage investment. Also, it clarifies how different ownership structures of storage influence merchant storage profitability and system cost structures in different capital cost of storage investment and wind penetration level scenarios. The numerical results conducted on a 6‐bus illustrative example and the IEEE 24‐bus Reliability test case validate the proposed model. The results show that both regulated and merchant storage can increase social welfare, and social welfare remains almost the same under different ownership structures of storage.
Funder
China Scholarship Council
Publisher
Institution of Engineering and Technology (IET)
Subject
Electrical and Electronic Engineering,Energy Engineering and Power Technology,Control and Systems Engineering
Reference37 articles.
1. Andrey C. Barberi P. Lacombe L. vanNuffel L. Gérard F. Dedecca J.G.et al.:Study on energy storage–Contribution to the security of the electricity supply in Europe.European Commission Brussels Belgium (2020) [Online].https://op.europa.eu/s/u5Qp
2. Electricity advisory committee:2014 storage plan assessment recommendations for the U.S. department of energy. (2014) [Online].https://www.energy.gov/sites/prod/files/2014/10/f18/2014StoragePlanAssessment‐Recs‐for‐DOE‐Sep2014.pdf
3. Report from the Commission to the European Parliament the Council the European Economic and Social Committee the Committee of the Regions And The European Investment Bank On the Implementation of the Strategic Action Plan on Batteries: Building a Strategic Battery Value Chain in Europe.Brussels Belgium (2019) [Online].https://eur‐lex.europa.eu/legal‐content/en/TXT/?uri=CELEX:52019DC0176
4. Assessing the potential of merchant energy storage to maximize social welfare of renewable-based distribution networks considering risk analysis
5. Scalable Planning for Energy Storage in Energy and Reserve Markets