Energy storage in electricity markets

2018 ◽  
pp. 87-111
Author(s):  
Hrvoje Pandzio ◽  
Yury Dvorkin
Keyword(s):  
Energy Storage ◽  
Electricity Markets

scholarly journals Energy Storage as a System Resource

2020 ◽  
Author(s):  
Ramon Leon ◽  
Maria Camila Ochoa ◽  
Alejandro Gutierrez
Keyword(s):  
Energy Storage ◽  
Electricity Markets ◽  
Large Scale ◽  
Business Models ◽  
Power Grids ◽  
Renewable Energy Resources ◽  
Grid Resource ◽  
Electric Industry ◽  
Sustainable Business ◽  
System Resource

The origins of the electric industry can be traced back to the invention of the battery. However, Energy Storage Systems (ESS) have never been considered as a part of the electricity supply chain. Even though there has been an increase of government mandated storage investments in power grids, market driven investments are still lacking sustainable business models. Now, with the possibility that cost reductions of the technology make it viable for widespread utilization, multiple efforts have been devoted by the academia and industry to design its incorporation into electricity markets. A large majority of the proposals have been devoted to develop mechanisms for their incorporation in ancillary services markets or for arbitrage, considering storage as another market player, both still with little success in providing sustainable benefits to energy consumers and investors alike. In this paper, we demonstrate that Large Scale Energy Storage excels when incorporated as a service provider in electricity markets. Our proposal considers ESS as a grid resource, available to the ISO to achieve the optimal mix of resources in the day ahead dispatch. We demonstrate that in the Colombian system, a large ESS used in this manner may achieve high benefit-cost ratios. The results also indicate that current market designs need to evolve in order to take better advantage of energy storage and renewable energy resources.

scholarly journals Forecast Error Sensitivity Analysis for Bidding in Electricity Markets with a Hybrid Renewable Plant Using a Battery Energy Storage System

2020 ◽  
Vol 12 (9) ◽  
pp. 3577 ◽  
Author(s):  
Jon Martinez-Rico ◽  
Ekaitz Zulueta ◽  
Unai Fernandez-Gamiz ◽  
Ismael Ruiz de Argandoña ◽  
Mikel Armendia
Keyword(s):  
Sensitivity Analysis ◽  
Energy Storage ◽  
Electricity Markets ◽  
Electricity Market ◽  
Forecast Error ◽  
Storage System ◽  
Energy Storage System ◽  
Prediction Errors ◽  
Electricity Grid ◽  
Battery Energy

Deep integration of renewable energies into the electricity grid is restricted by the problems related to their intermittent and uncertain nature. These problems affect both system operators and renewable power plant owners since, due to the electricity market rules, plants need to report their production some hours in advance and are, hence, exposed to possible penalties associated with unfulfillment of energy production. In this context, energy storage systems appear as a promising solution to reduce the stochastic nature of renewable sources. Furthermore, batteries can also be used for performing energy arbitrage, which consists in shifting energy and selling it at higher price hours. In this paper, a bidding optimization algorithm is used for enhancing profitability and minimizing the battery loss of value. The algorithm considers the participation in both day-ahead and intraday markets, and a sensitivity analysis is conducted to check the profitability variation related to prediction uncertainty. The obtained results highlight the importance of bidding in intraday markets to compensate the prediction errors and show that, for the Iberian Electricity Market, the uncertainty does not significantly affect the final benefits.

How Can Energy Storage Catalyze the Electricity Policies of Gulf Cooperation Council Members? Issues and Options

2021 ◽  
Author(s):  
Rolando Fuentes ◽  
Shahid Hasan ◽  
Frank Felder
Keyword(s):  
Saudi Arabia ◽  
Renewable Energy ◽  
Energy Storage ◽  
Economic Efficiency ◽  
Electricity Markets ◽  
Gulf Cooperation Council ◽  
Public Budget ◽  
Power Sector ◽  
The Public

Saudi Arabia and other Gulf Cooperation Council (GCC) members are working in parallel to reform their electricity markets and achieve ambitious renewable energy deployment goals. The motivation for this agenda is multifaceted, and increasing economic efficiency is one of several reasons for these efforts. By introducing markets in the power sector (i.e., liberalizing this sector), these countries aim to reduce the sector’s reliance on the public budget.

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