Impact of strategic behavior and ownership of energy storage on provision of flexibility

Hartwig, Karl and Kockar, Ivana (2016) Impact of strategic behavior and ownership of energy storage on provision of flexibility. IEEE Transactions on Sustainable Energy, 7 (2). 744 - 754. ISSN 1949-3037 (https://doi.org/10.1109/TSTE.2015.2497967)

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Abstract

Energy Storage Systems (ESS) are expected to provide additional flexibility to managed variable power flows in future power systems. It is believed that the business case for ESS as an alternative to traditional network reinforcements can be improved if the assets are able to access additional revenue streams by participating in energy and ancillary services markets. To enable this, the storage may need to be operated by private merchants to circumvent the unbundling principle applied in electricity markets today. However, it is not clear if the right incentives are in place for these entities to operate the ESS in a way that provides the required flexibility and supports the wider system benefits sought by the System Operator (SO). This work seeks to evaluate the impact of strategic behavior of an independent trader operating ESS in a nodal electricity market. The results indicated that a strategic bidder operating ESS tends to underuse the assets leading to suboptimal solution in terms of market welfare, as well as congestion and curtailment reduction, removing some of the potential benefits the ESS can provide to the power system.

ORCID iDs

Hartwig, Karl ORCID logoORCID: https://orcid.org/0000-0003-1819-3368 and Kockar, Ivana ORCID logoORCID: https://orcid.org/0000-0001-9246-1303;
  • Item type:Article
    ID code:54796
    Dates:
    Date
    Event
    30 April 2016
    Published
    17 December 2015
    Published Online
    30 October 2015
    Accepted
    Notes:(c) 2015 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.
    Subjects:Technology > Electrical engineering. Electronics Nuclear engineering
    Department:Faculty of Engineering > Electronic and Electrical Engineering
    Depositing user: Pure Administrator
    Date deposited:18 Jan 2016 11:51
    Last modified:19 Nov 2024 01:07
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/54796
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