Optimal valuation of wind energy projects co-located with battery storage

Loukatou, Angeliki; Johnson, Paul V.; Howell, Sydney; Duck, Peter W.

doi:10.1016/j.apenergy.2020.116247

Cited by 21 publications

(20 citation statements)

References 57 publications

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“…However, we do not include the degradation of the battery because of usage and aging in our model. It has been found that this can be an important characteristic to take into account in sizing studies [6], so this could be an interesting feature to add to future versions of our model, but is considered out of the scope of this paper.…”

Section: Problem Settingmentioning

confidence: 99%

“…In [5], the optimal size of a BESS is found for a grid-connected PV system that can purchase and sell energy from the grid under time-of-use pricing, and the convexity of profit in storage size is shown. In [6], the value of co-located storage is analyzed for the case of the UK market as subsidies are phased out; a comparison of participation in the wholesale market with co-located storage vs a long-term power purchase agreement with contracts for differences is made with help of a model using stochastic differential equations describing wind power production and prices.…”

Section: Introductionmentioning

confidence: 99%

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Sizing Co-located Storage for Uncertain Renewable Energy Sold Through Forward Contracts

Zuluaga¹,

Oren²

2022

Preprint

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In this paper, we propose a high-level Stochastic steady-state model to analyze the value of co-located energy storage systems for wind power producers that participate in an electricity market through Forward or Day Ahead contracts.In particular, we try to find optimal sizing and contracting and stationary operating policies for profit maximization in the longrun. We obtain a stylized model calibrated to actual wind power production and electricity wholesale price data that allows us to asses the value of storage size and perform sensitivity analysis on key parameters such as contract prices, storage cost and storage efficiency.

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Section: Problem Settingmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Sizing Co-located Storage for Uncertain Renewable Energy Sold Through Forward Contracts

Zuluaga¹,

Oren²

2022

Preprint

View full text Add to dashboard Cite

show abstract

“…Consequently, it can be argued that if these Western European and other nations were less reliant on fossil fuels in general, the geopolitics currently in play could have been altered towards greater international peace through the adoption of renewable energy (Ratner et al, 2019;Su et al, 2021;Yusta and Beyza, 2021;Hosseini, 2022). Renewable energy, however, is strongly reliant on the grid operator's ability to store electricity generated from (primarily) solar and wind energy (Keck et al, 2019;Loukatou et al, 2020;Laribi and Rudion, 2021;Mikulski and Tomczewski, 2021;Šimić et al, 2021;Olabi et al, 2022a). Lithium-ion batteries (LiBs) have emerged as a critical technology in advancing the spread and development of renewable energy (Olabi et al, 2022b) and are being used to stabilize electrical grids (Mora et al, 2020;Laribi and Rudion, 2021;Moy et al, 2021), and in a new generation of electric vehicles (Rodríguez-Fernández et al, 2020;Scott and Ireland 2020;Cui et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Investigating the effect of government subsidies on enterprise research and development

Buravleva

et al. 2022

Front. Environ. Sci.

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Governments design and implement policies to achieve various goals. Still, perhaps none are as pressing as shifting national economies away from non-renewable fuels and towards more sustainable, environmentally-friendly technologies. To incentivize such transitions, governments provide subsidies to private and public companies to innovate, i.e., to engage in research and development (R&D). However, it can be asked if companies are using government subsidies (GS) actually to perform R&D, and the answer will determine the effectiveness of government policies. This paper seeks to answer this question by investigating Chinese lithium-ion battery (LiB) firms and the GS they receive. Hausman tests, fixed- and random-effects models, and Generalized Method of Moments confirmed a positive but weak correlation between GS and R&D as determined by patent output (PO). Interestingly, observations of information flow suggested that GS also affected other variables such as net profit and main business income. This suggests that firms are awarded GS for higher PO, but a corresponding increase in R&D and its expected growth in company performance is not occurring. It is suggested that performance indicators other than PO be used as Chinese firms may use this metric to apply for more GS, rather than performing R&D that leads to technological breakthroughs.

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“…Most of the existing literature about HPPs is mainly concerned with the offer of energy in day-ahead (DA) and/or intraday (ID) market to maximize revenues [9]- [14]. Furthermore, some of the investigations consider imbalance costs, which is settled in balancing market [15]- [19]. The DA spot market optimization considering imbalance cost is studied in [15], this model being further improved in [16] by incorporating linear decision rule (LDR) for real-time operation.…”

Section: Introductionmentioning

confidence: 99%

Optimal Participation of Co-located Wind-battery Plants in Sequential Electricity Markets

Zhu¹,

Das²,

Sørensen³

et al. 2022

Preprint

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<p>Since hybrid power plants (HPPs) play an intensive role in the energy supply balance of future energy systems, there is today an increased attention on co-located wind-battery HPPs both in industry and academia. However, the profitability of HPPs in sequential electricity markets to overcome initial investment costs has not been yet well examined, especially with respect to balancing services provision. This article proposes a novel energy management system (EMS) for optimal participation of wind-battery HPPs in two sequential electricity markets, namely in spot market and balancing market. The methodology consists of three optimization models, which allow HPPs to achieve energy arbitrage, to provide balancing services, and to reduce real-time imbalance costs. Furthermore, the profitability of HPPs in future (2030) energy scenario is analyzed based on the new designed and developed EMS taking balancing service into account. The results of the overplanting case show that HPPs operated based on the proposed EMS achieve net present value 3.6 times as high as sole operation in spot market.</p>

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Optimal valuation of wind energy projects co-located with battery storage

Cited by 21 publications

References 57 publications

Sizing Co-located Storage for Uncertain Renewable Energy Sold Through Forward Contracts

Sizing Co-located Storage for Uncertain Renewable Energy Sold Through Forward Contracts

Investigating the effect of government subsidies on enterprise research and development

Optimal Participation of Co-located Wind-battery Plants in Sequential Electricity Markets

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