Operating and Investment Models for Energy Storage Systems

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.

Integration Opportunities of Power-to-Gas and Internet-of-Things Technical Advancements: A Systematic Literature Review

“…It could be further elaborated based on the integration of P2G and IoT in an MES, however, because that pricing and market conditions of P2G systems [90,91] and IoT-enabled smart-or microgrids [92] are discussed separately, while IoT-based P2G and MES would require a holistic approach. Future research of these integrated (sub)systems could be based on the classification of Miletić et al [93], who differentiated strategic and non-strategic price-modeling approaches based on the size of the focal energy storage systems.…”

Investment Decision for Long-Term Battery Energy Storage System Using Least Squares Monte Carlo

“…PG&Es in the United States are expanding their ESS facilities through long-term contracts [14][15][16]. To achieve the goal of the basic plan for electricity supply and demand, a method must be developed to determine the optimal investment timing of ESSs and research on ESS market participation is being conducted [17].…”

A Review of Lithium-Ion Battery Models in Techno-economic Analyses of Power Systems

“…Over the years since, the strategic battery operation in various decision-making studies in power systems have been modelled using generic models without a reference to a particular battery technology. Miletic and coworkers [15] summarized and structured optimization frameworks and market models for stationary energy storage used in operation and planning problems on the transmission and distribution levels. A standard power-energy model and its various modifications were discussed as well.…”

“…This paper builds on previous works; for example, it extends the work presented in [20] where the models were presented but no discussions of their application in techno-economic optimization problems were conducted. Compared with [15], where different optimization models for BESS operation and planning were summarized, and with [18], where optimization protocols and frameworks for BESS applications were addressed, in this review paper, various applications were examined from the perspective of how the battery was described and represented. The review work [21] was focused on the battery models for the BMS and the architecture of BESS and BMS.…”