Auction-Based Allocation of Shared Electricity Storage Resources Through Physical Storage Rights

Brijs, Tom; Huppmann, Daniel; Siddiqui, Sauleh; Belmans, Ronnie

doi:10.2139/ssrn.2759796

Cited by 6 publications

(9 citation statements)

References 27 publications

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“…Continuous trading is possible from 02:00 pm D-1 in Belgium, and from 03:00 pm D-1 in France, Germany, and the Netherlands. 5 This trading can occur until close-to-RT, i.e., until 5 min to RT in Belgium and the Netherlands, and until 30 min to RT in France and Germany. The continuous trading order book is visible to all market participants, and contains all submitted bids that have not cleared yet.…”

Section: Intra-day Market Typesmentioning

confidence: 99%

“…Further, a paradigm shift is taking place from a situation where generation was dispatched to follow inflexible demand to a situation in which flexibility is provided by both generation and consumers. However, there will be a need for electricity storage as well to fill the remaining gap, and for the further development of interconnection capacity and integration of adjacent markets to access flexible resources in neighboring regions [5].…”

Section: Introductionmentioning

confidence: 99%

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Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

et al. 2017

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Short-term electricity markets are generally defined as markets that take place from the day-ahead stage until physical generation and consumption. These markets include dayahead, intra-day, and real-time balancing markets. In Europe, the first two are managed by power exchanges, while the third consists of reserve procurement and imbalance settlement and is operated by the local transmission system operator. Short-term markets are important tools to deal with net demand variability in the system, in which the need for flexibility is expressed and its provision is valorized. Due to the ongoing integration of variable renewables in the generation mix, the system's variability is increasing as a result of the limited controllability and predictability of those resources. As such, these markets become increasingly important. The contribution of this article is a comprehensive upto-date discussion of the key design parameters and functioning of all three short-term markets, and their impact on the demand for and supply of flexibility. An understanding of the design and its implications is useful to policy-makers who are considering changes to facilitate the integration, availability, or valorization of flexibility, while also contributing to the decision-making of flexibility investors and operators. The geographical scope is the Central Western European region, including the Belgian, French, German, and Dutch market zones.

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Section: Intra-day Market Typesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

et al. 2017

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“…Electricity storage refers to systems, bidirectionally coupled with the power system, which buffer energy. The energy buffer can be implemented based on a variety of physical principles: energy stored as thermal, chemical, electro-chemical, kinetic, or potential energy, or in the electro-magnetic field [1]. Although pumped-hydro storage (PHS) is currently the most installed storage technology with ≥ 99 % of global capacity, and significant potential for new PHS capacity may still be present [2,3], cost decreases and technological advancements are making battery energy storage (BES) increasingly competitive.…”

Section: Motivationmentioning

confidence: 99%

“…To reduce problem size and facilitate manageable computation times, we couple a continuous relaxation of the technology-clustered formulation of the UC problem to the investment problem. 1…”

Section: Continuously-relaxed and Technology-clustered Uc Formulationmentioning

confidence: 99%

Evaluating the role of electricity storage by considering short-term operation in long-term planning

Brijs

Stiphout

Siddiqui

et al. 2017

Sustainable Energy, Grids and Networks

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Short-term operating requirements and constraints in power systems are becoming increasingly important with the greater flexibility needed due to the integration of variable renewables. However, large problem sizes and computational barriers have limited the extent to which they are included in long-term planning models. Our objective is to understand the role of electricity storage in future renewable-based systems by including an accurate representation of short-term operation with high temporal detail within a long-term planning framework. Specifically, we discuss the development of a long-term investment model including a continuous relaxation of the technology-clustered formulation of the short-term unit commitment problem, including detailed operating reserve sizing and supply. This model is solved for a full year, and is applied to a test system with system load and renewable generation characteristics from the Belgian power system in a greenfield setting, i.e., assuming no pre-existing capacities, to analyze the role of storage at different renewable penetration levels. Both pumped-hydro storage and battery energy storage is considered, and their role in providing energy services and frequency control is investigated. We derive broadly applicable conclusions on the benefits and role of electricity storage to motivate why it may be built and operated. Results show that, in general, the integration of storage resources decreases total system cost, partially replaces flexible power plants, facilitates the integration of renewable energy sources, and allows inflexible technologies to perform better.

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“…Reserve provision by the demand-side is not considered. Brijs et al [22] examines multiple revenue streams available to storage devices, which have similarities with DR. However they restrict their attention to energy services provision over different time scales and for different applications, and do not consider reserve provision.…”

Section: Introductionmentioning

confidence: 99%

The effect of Demand Response and wind generation on electricity investment and operation

Devine

Nolan

Lynch

et al. 2019

Sustainable Energy, Grids and Networks

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.Abstract: We present a novel method of determining the contribution of load-shifting Demand Response (DR) to energy and reserve markets. We model DR in an Mixed Complementarity Problem (MCP) framework with high levels of wind penetration. Investment, exit and operational decisions are optimised simultaneously. We examine the potential for DR to participate in both energy and reserve markets. DR participation in the energy market reduces costs and prices but the impact of DR participation in reserve markets is limited. DR and wind generation are strongly complementary, due to the ability of DR to mitigate against the variability of wind generation, with the highest impacts of DR seen at high levels of wind penetration. DR participation in the energy market gives rise to lower equilibrium levels of investment in conventional generation and induces a Pareto improvement versus a market with no DR participation. The total impact of DR is highly dependent on specific system characteristics.Abstract-We present a novel method of determining the contribution of load-shifting Demand Response (DR) to energy and reserve markets. We model DR in an Mixed Complementarity Problem (MCP) framework with high levels of wind penetration. Investment, exit and operational decisions are optimised simultaneously. We examine the potential for DR to participate in both energy and reserve markets. DR participation in the energy market reduces costs and prices but the impact of DR participation in reserve markets is limited. DR and wind generation are strongly complementary, due to the ability of DR to mitigate against the variability of wind generation, with the highest impacts of DR seen at high levels of wind penetration. DR participation in the energy market gives rise to lower equilibrium levels of investment in conventional generation and induces a Pareto improvement versus a market with no DR participation. The total impact of DR is highly dependent on specific system characteristics.

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Auction-Based Allocation of Shared Electricity Storage Resources Through Physical Storage Rights

Cited by 6 publications

References 27 publications

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

Evaluating the role of electricity storage by considering short-term operation in long-term planning

The effect of Demand Response and wind generation on electricity investment and operation

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