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Operating and Investment Models for Energy Storage Systems

Author

Listed:
  • Marija Miletić

    (Faculty of Electrical Engineering and Computing, University of Zagreb, Unska ulica No. 3, 10000 Zagreb, Croatia)

  • Hrvoje Pandžić

    (Faculty of Electrical Engineering and Computing, University of Zagreb, Unska ulica No. 3, 10000 Zagreb, Croatia)

  • Dechang Yang

    (College of Information and Electrical Engineering, China Agricultural University, No. 17 Qinghuadonglu, Haidian, Beijing 100083, China)

Abstract

In the context of climate changes and the rapid growth of energy consumption, intermittent renewable energy sources (RES) are being predominantly installed in power systems. It has been largely elucidated that challenges that RES present to the system can be mitigated with energy storage systems (ESS). However, besides providing flexibility to intermittent RES, ESS have other sources of revenue, such as price arbitrage in the markets, balancing services, and reducing the cost of electricity procurement to end consumers. In order to operate the ESS in the most profitable way, it is often necessary to make optimal siting and sizing decisions, and to determine optimal ways for the ESS to participate in a variety of energy and ancillary service markets. As a result, many publications on ESS models with various goals and operating environments are available. This paper aims at presenting the results of these papers in a structured way. A standard ESS model is first outlined, and that is followed by a literature review on operational and investment ESS models at the transmission and distribution levels. Both the price taking and price making models are elaborated on and presented in detail. Based on the examined body of work, the paper is concluded with recommendations for future research paths in the analysis of ESS.

Suggested Citation

  • Marija Miletić & Hrvoje Pandžić & Dechang Yang, 2020. "Operating and Investment Models for Energy Storage Systems," Energies, MDPI, vol. 13(18), pages 1-33, September.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:18:p:4600-:d:408922
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    References listed on IDEAS

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    Cited by:

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    2. 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.
    3. Željko Tomšić & Sara Raos & Ivan Rajšl & Perica Ilak, 2020. "Role of Electric Vehicles in Transition to Low Carbon Power System—Case Study Croatia," Energies, MDPI, vol. 13(24), pages 1-22, December.
    4. Gaurav Chaudhary & Jacob J. Lamb & Odne S. Burheim & Bjørn Austbø, 2021. "Review of Energy Storage and Energy Management System Control Strategies in Microgrids," Energies, MDPI, vol. 14(16), pages 1-26, August.
    5. Vykhodtsev, Anton V. & Jang, Darren & Wang, Qianpu & Rosehart, William & Zareipour, Hamidreza, 2022. "A review of modelling approaches to characterize lithium-ion battery energy storage systems in techno-economic analyses of power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    6. József Magyari & Krisztina Hegedüs & Botond Sinóros-Szabó, 2022. "Integration Opportunities of Power-to-Gas and Internet-of-Things Technical Advancements: A Systematic Literature Review," Energies, MDPI, vol. 15(19), pages 1-19, September.

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