Strategic Investment in Transmission and Energy Storage in Electricity Markets

Tian, Kunpeng; Sun, Weiqing; Han, Dong

doi:10.35833/mpce.2020.000927

Cited by 16 publications

(9 citation statements)

References 31 publications

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“…where ⊥ denotes complementarity. The model was convex, so the strong duality held and its objective function could be represented by the dual variables; further, its payment could be represented by the dual variables, as in the following equation [32]:…”

Section: Derivation Of the Solution Processmentioning

confidence: 99%

A Two-Stage Robust Pricing Strategy for Electric Vehicle Aggregators Considering Dual Uncertainty in Electricity Demand and Real-Time Electricity Prices

Wang,

Sun

2024

Sustainability

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To enable the regulation and utilization of electric vehicle (EV) load resources by the power grid in the electricity market environment, a third-party electric vehicle aggregator (EVA) must be introduced. The strategy of EVA participation in the electricity market must be studied. During operation, the EVA faces a double uncertainty in the market, namely, electricity demand and electricity price, and must optimize its market behavior to protect its own interests. To achieve this goal, we propose a robust pricing strategy for the EVA that takes into account the coordination of two-stage market behavior to enhance operational efficiency and risk resistance. A two-stage robust pricing strategy that takes into account uncertainty was established by first considering day-ahead pricing, day-ahead electricity purchases, real-time electricity management, and EV customer demand response for the EVA, and further considering the uncertainty in electricity demand and electricity prices. The two-stage robust pricing model was transformed into a two-stage mixed integer programming by linearization method and solved iteratively by the columns and constraints generation (CCG) algorithm. Simulation verification was carried out, and the results show that the proposed strategy fully considers the influence of price uncertainty factors, effectively avoids market risks, and improves the adaptability and economy of the EVA’s business strategy.

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Section: Derivation Of the Solution Processmentioning

confidence: 99%

A Two-Stage Robust Pricing Strategy for Electric Vehicle Aggregators Considering Dual Uncertainty in Electricity Demand and Real-Time Electricity Prices

Wang,

Sun

2024

Sustainability

Self Cite

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“…Furthermore, ref. [23] proposes a substation planning method for a distribution network that accounts for the widespread integration of distributed generators in a low-carbon economy.…”

Section: Literature Reviewmentioning

confidence: 99%

Investments in Electricity Distribution Grids: Strategic versus Incremental Planning

Giannelos,

Zhang,

Pudjianto

et al. 2024

Energies

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The ongoing electrification of the transport sector is expected to cause an increase in electricity demand and, therefore, trigger significant network investments to accommodate it. This paper focuses on investment decision-making for electricity distribution grids and specifically on the strategic and incremental investment network planning approaches. In particular, the former involves network planning with the consideration of a long-term multi-stage study horizon, as opposed to a shorter–term view of the future that applies to the latter case. An investment analysis that is carried out underlines the economic savings generated from adopting a strategic investment perspective over an incremental one. These economic savings are achieved from the fact that the associated fixed investment costs are incurred only once in the horizon under strategic planning. On the other hand, incremental planning involves a series of network reinforcement decisions, thereby incurring the fixed cost multiple times. In addition, sensitivity analyses that are carried out capture the effect of key parameters, such as investment cost, discount rate and investment delay, on the generated economic savings.

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“…Still, more attention should be paid to whether energy storage can benefit from participating in the electricity market. Literature [14] constructs a trading decision model to simulate and analyze the trading decision behavior and market clearing mechanism of energy storage in the market; literatures [15] [16] propose a joint investment framework for renewable energy transmission lines and energy storage using the multiple level model to simultaneously meet the energy storage investment profit and social welfare maximization. Most of the above studies have focused on coordinated optimization to maximize the revenue from energy storage participation in the electricity market and have rarely considered the revenue prospects of energy storage investments.…”

Section: Introductionmentioning

confidence: 99%

Research on the revenue prospect for energy storage participation in electricity spot and FM auxiliary service markets —Considering capacity market mechanisms

Hu,

Zhao,

Zhang

et al. 2024

Preprint

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The vigorous development of energy storage is significant in supporting new energy consumption and enhancing the power system regulation capability. The spot and auxiliary service markets are the core ways for energy storage to realize commercial value. This paper establishes a revenue prediction model for energy storage participation in the electricity spot and FM auxiliary service market from the perspective of the revenue outlook of energy storage investment, including electric energy spot revenue, spot response incentive revenue considering capacity market price, and FM capacity revenue and FM mileage revenue. Specifically, the BP neural network prediction model, the FM clearing prediction model, and the capacity market supply and demand model are used to combine a variety of influencing factors to predict the spot price spread of electric energy, the FM mileage price, and the capacity price, which are then solved by substituting other parameters into the model. The results show that the method proposed in this paper is favorable for energy storage investment cost recovery and has good economics.

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Strategic Investment in Transmission and Energy Storage in Electricity Markets

Cited by 16 publications

References 31 publications

A Two-Stage Robust Pricing Strategy for Electric Vehicle Aggregators Considering Dual Uncertainty in Electricity Demand and Real-Time Electricity Prices

A Two-Stage Robust Pricing Strategy for Electric Vehicle Aggregators Considering Dual Uncertainty in Electricity Demand and Real-Time Electricity Prices

Investments in Electricity Distribution Grids: Strategic versus Incremental Planning

Research on the revenue prospect for energy storage participation in electricity spot and FM auxiliary service markets —Considering capacity market mechanisms

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