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Economic assessment of a price-maker energy storage facility in the Alberta electricity market

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  • Shafiee, Soroush
  • Zamani-Dehkordi, Payam
  • Zareipour, Hamidreza
  • Knight, Andrew M.

Abstract

Dynamic price fluctuations in the Alberta electricity market bring potential economic opportunities for electricity energy storage technologies. However, storage operation in the market could have significant impact on electricity prices. This paper evaluates the potential operating profit available through arbitrage operation for a price-maker storage facility in Alberta. Considering a five-year period from 2010 to 2014, hourly generation and demand price quota curves (GPQCs and DPQCs) are constructed to incorporate price impact as an input to the self-scheduling problem of a price-maker storage facility. The self-scheduling model is applied to the historical hourly GPQCs and DPQCs of the Alberta electricity market to investigate the potential economic performance of a price-maker energy storage facility.

Suggested Citation

  • Shafiee, Soroush & Zamani-Dehkordi, Payam & Zareipour, Hamidreza & Knight, Andrew M., 2016. "Economic assessment of a price-maker energy storage facility in the Alberta electricity market," Energy, Elsevier, vol. 111(C), pages 537-547.
    • Handle: RePEc:eee:energy:v:111:y:2016:i:c:p:537-547
    DOI: 10.1016/j.energy.2016.05.086
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    6. Dongwei Zhao & Mehdi Jafari & Audun Botterud & Apurba Sakti, 2022. "Strategic Storage Investment in Electricity Markets," Papers 2201.02290, arXiv.org, revised Mar 2022.
    7. Marija Miletić & Hrvoje Pandžić & Dechang Yang, 2020. "Operating and Investment Models for Energy Storage Systems," Energies, MDPI, vol. 13(18), pages 1-33, September.
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