Market Impacts of Energy Storage in a Transmission-Constrained Power System

Abstract

Environmental concerns have motivated governments in the European Union and elsewhere to set ambitious targets for generation from renewable energy (RE) technologies and to offer subsidies for their adoption along with priority grid access. However, because RE technologies like solar and wind power are intermittent, their penetration places greater strain on existing conventional power plants that need to ramp up more often. In turn, energy storage technologies, e.g., pumped hydro storage or compressed air storage, are proposed to offset the intermittency of RE technologies and to facilitate their integration into the grid. We assess the economic and environmental consequences of storage via a complementarity model of a stylized Western European power system with market power, representation of the transmission grid, and uncertainty in RE output. Although storage helps to reduce congestion and ramping costs, it may actually increase greenhouse gas emissions from conventional power plants in a perfectly competitive setting. Conversely, strategic use of storage by producers renders it less effective at curbing both congestion and ramping costs, while having no net overall impact on emissions.

Market Power With Combined Heat and Power Production in the Nordic Energy System

“…Indeed, complementarity modeling is flexible enough to assess market designs with increasing VRE shares, energy storage, and the gas market, e.g., [23]- [27]. This provides a framework that is appropriate for the research question (CHP's impact on market power) and the case study (Nordic region) because:…”

“…T t S n AC θ n AC ,t = 0 (γ n AC ,t ), ∀n AC ∈ N AC , t (27) θ n AC ,t and f ℓ,t u.r.s., ∀n AC ∈ N AC , ℓ, t…”

“…Constraints (25) and (26) ensure that the maximum capacities of transmission lines ℓ ∈ L are not exceeded. Constraint (27) sets the slack node for the DC load-flow in the AC circuit.…”

Energy flexibility assessment of an industrial coldstore process

“…Because of the properties of the installation this implies the corresponding compressors are also switched off (short buffer). Hence we drop these parameters upfront 1 . Finally (T x , V e ) will be used as model inputs to predict the output ∆t.…”

“…Although interesting for stability and usability of renewable sources [1], storing power when supply exceeds demand is very costly at this point and therefore economically infeasible. A lot of effort has been put into providing flexibility on the supply side of the grid by introducing versatile solutions such as gas plants that can be enabled quickly when demand rises and might exceed the supply.…”