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Optimal allocation of energy storage in a co-optimized electricity market: Benefits assessment and deriving indicators for economic storage ventures

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  • Krishnan, Venkat
  • Das, Trishna

Abstract

This paper presents a framework for optimally allocating storage technologies in a power system. This decision support tool helps in quantitatively answering the questions on “where to and how much to install” considering the profits from arbitrage opportunities in a co-optimized electricity market. The developed framework is illustrated on a modified IEEE (Institute of Electrical and Electronics Engineers) 24 bus RTS (Reliability Test System), and the framework finds the optimal allocation solution and the revenues storage earns at each of these locations. Bulk energy storage, CAES (compressed air energy storage) is used as the representative storage technology, and the benefits of optimally allocated storage integration onto the grid are compared with transmission expansion solution. The paper also discusses about system-level indicators to identify candidate locations for economical storage ventures, which are derived based on the optimal storage allocation solution; and applies the market price based storage venture indicators on MISO (Mid-continental Independent System Operator) and PJM (Pennsylvania-New Jersey-Maryland Interconnection) electricity markets.

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  • Krishnan, Venkat & Das, Trishna, 2015. "Optimal allocation of energy storage in a co-optimized electricity market: Benefits assessment and deriving indicators for economic storage ventures," Energy, Elsevier, vol. 81(C), pages 175-188.
    • Handle: RePEc:eee:energy:v:81:y:2015:i:c:p:175-188
    DOI: 10.1016/j.energy.2014.12.016
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    7. Hemmati, Reza & Saboori, Hedayat & Saboori, Saeid, 2016. "Stochastic risk-averse coordinated scheduling of grid integrated energy storage units in transmission constrained wind-thermal systems within a conditional value-at-risk framework," Energy, Elsevier, vol. 113(C), pages 762-775.
    8. Azad-Farsani, Ehsan, 2017. "Loss minimization in distribution systems based on LMP calculation using honey bee mating optimization and point estimate method," Energy, Elsevier, vol. 140(P1), pages 1-9.
    9. Mohamad, Farihan & Teh, Jiashen & Lai, Ching-Ming, 2021. "Optimum allocation of battery energy storage systems for power grid enhanced with solar energy," Energy, Elsevier, vol. 223(C).
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    13. Nojavan, Sayyad & Majidi, Majid & Esfetanaj, Naser Nourani, 2017. "An efficient cost-reliability optimization model for optimal siting and sizing of energy storage system in a microgrid in the presence of responsible load management," Energy, Elsevier, vol. 139(C), pages 89-97.
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