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Investments in merchant energy storage: Trading-off between energy and reserve markets

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  • Pandžić, H.
  • Dvorkin, Y.
  • Carrión, M.

Abstract

Grid-scale energy storage units are regarded as an enabler of the renewable-dominant power systems. Currently available energy storage technologies are ubiquitous, but not equally suitable for providing different grid support services. As part of their investment process, merchant energy storage investors need to ensure that their energy storage investments are well aligned with unique grid support needs of each power system and that the storage characteristics are suitable for the simultaneous provision of multiple services.

Suggested Citation

  • Pandžić, H. & Dvorkin, Y. & Carrión, M., 2018. "Investments in merchant energy storage: Trading-off between energy and reserve markets," Applied Energy, Elsevier, vol. 230(C), pages 277-286.
    • Handle: RePEc:eee:appene:v:230:y:2018:i:c:p:277-286
    DOI: 10.1016/j.apenergy.2018.08.088
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    2. Khojasteh, Meysam & Faria, Pedro & Vale, Zita, 2022. "A robust model for aggregated bidding of energy storages and wind resources in the joint energy and reserve markets," Energy, Elsevier, vol. 238(PB).
    3. Chen, Yang & Odukomaiya, Adewale & Kassaee, Saiid & O’Connor, Patrick & Momen, Ayyoub M. & Liu, Xiaobing & Smith, Brennan T., 2019. "Preliminary analysis of market potential for a hydropneumatic ground-level integrated diverse energy storage system," Applied Energy, Elsevier, vol. 242(C), pages 1237-1247.
    4. Banshwar, Anuj & Sharma, Naveen Kumar & Sood, Yog Raj & Shrivastava, Rajnish, 2019. "Market-based participation of energy storage scheme to support renewable energy sources for the procurement of energy and spinning reserve," Renewable Energy, Elsevier, vol. 135(C), pages 326-344.
    5. Marija Miletić & Hrvoje Pandžić & Dechang Yang, 2020. "Operating and Investment Models for Energy Storage Systems," Energies, MDPI, vol. 13(18), pages 1-33, September.
    6. Jiang, Xin & Jin, Yang & Zheng, Xueyuan & Hu, Guobao & Zeng, Qingshan, 2020. "Optimal configuration of grid-side battery energy storage system under power marketization," Applied Energy, Elsevier, vol. 272(C).
    7. Dranka, Géremi Gilson & Ferreira, Paula & Vaz, A. Ismael F., 2021. "A review of co-optimization approaches for operational and planning problems in the energy sector," Applied Energy, Elsevier, vol. 304(C).
    8. Manna, Carlo & Lahariya, Manu & Karami, Farzaneh & Develder, Chris, 2023. "A data-driven optimization framework for industrial demand-side flexibility," Energy, Elsevier, vol. 278(C).
    9. Yongming Zhang & Zhe Yan & Li Li & Jiawei Yao, 2018. "A Hybrid Building Power Distribution System in Consideration of Supply and Demand-Side: A Short Overview and a Case Study," Energies, MDPI, vol. 11(11), pages 1-19, November.
    10. Gan, Wei & Ai, Xiaomeng & Fang, Jiakun & Yan, Mingyu & Yao, Wei & Zuo, Wenping & Wen, Jinyu, 2019. "Security constrained co-planning of transmission expansion and energy storage," Applied Energy, Elsevier, vol. 239(C), pages 383-394.
    11. Ting Zhang & Shuaishuai Cao & Lingying Pan & Chenyu Zhou, 2020. "A Policy Effect Analysis of China’s Energy Storage Development Based on a Multi-Agent Evolutionary Game Model," Energies, MDPI, vol. 13(23), pages 1-35, November.
    12. Kristina Pandžić & Ivan Pavić & Ivan Andročec & Hrvoje Pandžić, 2020. "Optimal Battery Storage Participation in European Energy and Reserves Markets," Energies, MDPI, vol. 13(24), pages 1-21, December.
    13. Zhao, Dongwei & Jafari, Mehdi & Botterud, Audun & Sakti, Apurba, 2022. "Strategic energy storage investments: A case study of the CAISO electricity market," Applied Energy, Elsevier, vol. 325(C).
    14. Iria, José & Heleno, Miguel & Cardoso, Gonçalo, 2019. "Optimal sizing and placement of energy storage systems and on-load tap changer transformers in distribution networks," Applied Energy, Elsevier, vol. 250(C), pages 1147-1157.
    15. Ahmed G. Abo-Khalil & Mohammad Alobaid, 2023. "A Guide to the Integration and Utilization of Energy Storage Systems with a Focus on Demand Resource Management and Power Quality Enhancement," Sustainability, MDPI, vol. 15(20), pages 1-19, October.
    16. Killer, Marvin & Farrokhseresht, Mana & Paterakis, Nikolaos G., 2020. "Implementation of large-scale Li-ion battery energy storage systems within the EMEA region," Applied Energy, Elsevier, vol. 260(C).

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