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Energy storage has exhibited great potential in providing flexibility in power system to meet critical peak demand and thus reduce the overall generation cost, which in turn stabilizes the electricity prices. In this work, we exploit the…

Systems and Control · Electrical Eng. & Systems 2020-05-05 Jiasheng Zhang , Nan Gu , Chenye Wu

There has recently been growing interest in the development of financial storage rights for energy storage systems as instruments akin to their transmission counterparts as a means to not only distribute congestion rents, but also to…

Optimization and Control · Mathematics 2019-08-21 L. S. A. Martins , R. L. Hochstetler

Ambitious renewable portfolio standards motivate the incorporation of energy storage resources (ESR) as sources of flexibility. While the United States government aims to promote ESR participation in electricity markets, work on market…

Systems and Control · Electrical Eng. & Systems 2022-06-07 Weiqi Zhang , Philip A. Tominac , Victor M. Zavala

This paper proposes a novel framework to price energy storage in economic dispatch with a social welfare maximization objective. This framework can be utilized by power system operators to generate default bids for storage or to benchmark…

Systems and Control · Electrical Eng. & Systems 2026-05-08 Ning Qi , Ningkun Zheng , Bolun Xu

This paper introduces and rationalizes a new model for bidding and clearing energy storage resources in wholesale energy markets. Charge and discharge bids in this model depend on the storage state-of-charge (SoC). In this setting, storage…

Systems and Control · Electrical Eng. & Systems 2023-01-27 Ningkun Zheng , Xin Qin , Di Wu , Gabe Murtaugh , Bolun Xu

Distributed, controllable energy storage devices offer several benefits to electric power system operation. Three such benefits include reducing peak load, providing standby power, and enhancing power quality. These benefits, however, are…

Physics and Society · Physics 2014-09-10 Reza Arghandeh , Jeremy Woyak , Ahmet Onen , Jaesung Jung , Robert P. Broadwater

The growing amount of intermittent renewables in power generation creates challenges for real-time matching of supply and demand in the power grid. Emerging ancillary power markets provide new incentives to consumers (e.g., electrical…

Systems and Control · Computer Science 2016-02-09 Hao Chen , Zhenhua Liu , Ayse K. Coskun , Adam Wierman

This paper proposes a novel algorithm to optimally size and place storage in low voltage (LV) networks based on a linearized multiperiod optimal power flow method which we call forward backward sweep optimal power flow (FBS-OPF). We show…

Systems and Control · Computer Science 2019-03-19 Philipp Fortenbacher , Martin Zellner , Göran Andersson

We study the price impact of storage facilities in electricity markets and analyze the long-term profitability of these facilities in prospective scenarios of energy transition. To this end, we begin by characterizing the optimal operating…

Mathematical Finance · Quantitative Finance 2024-10-17 Roxana Dumitrescu , Redouane Silvente , Peter Tankov

Energy storage resources must consider both price uncertainties and their physical operating characteristics when participating in wholesale electricity markets. This is a challenging problem as electricity prices are highly volatile, and…

Machine Learning · Computer Science 2023-06-02 Yousuf Baker , Ningkun Zheng , Bolun Xu

With the rapidly increased penetration of renewable generations, incentive-based demand side management (DSM) shows great value on alleviating the uncertainty and providing flexibility for microgrid. However, how to price those demand…

Optimization and Control · Mathematics 2019-08-06 Zhaohao Ding , Feng Zhu , Yajing Wang , Ying Lu , Lizi Zhang

Sharing economy is a transformative socio-economic phenomenon built around the idea of sharing underused resources and services, e.g. transportation and housing, thereby reducing costs and extracting value. Anticipating continued reduction…

Systems and Control · Computer Science 2018-07-24 Pratyush Chakraborty , Enrique Baeyens , Kameshwar Poolla , Pramod P. Khargonekar , Pravin Varaiya

The increasing penetration of renewable energy necessitates improved power system flexibility, driving the deployment of independent energy storage operators (ESOs). Existing research extensively investigates capacity sizing for price-taker…

Theoretical Economics · Economics 2026-05-19 Lizhong Zhang , Junqi Liu , Jianxiao Wang , Lei Zhu

We consider a smart grid with an independent system operator (ISO), and distributed aggregators who have energy storage and purchase energy from the ISO to serve its customers. All the entities in the system are foresighted: each aggregator…

Multiagent Systems · Computer Science 2014-01-13 Yuanzhang Xiao , Mihaela van der Schaar

Recently, the volatility associated with marginal prices has increased due to large scale integration of renewable generation. Price volatility is undesirable from a consumer perspective. To address this issue, we present a framework for…

Optimization and Control · Mathematics 2018-12-11 Shantanu Chakraborty , Kyri Baker , Milos Cvetkovic , Remco Verzijlbergh , Zofia Lukszo

Electricity storage is used for intertemporal price arbitrage and for ancillary services that balance unforeseen supply and demand fluctuations via frequency regulation. We present an optimization model that computes bids for both arbitrage…

Optimization and Control · Mathematics 2026-05-12 Dirk Lauinger , Luc Coté , Andy Sun

The problem of pricing utility-scale energy storage resources (ESRs) in the real-time electricity market is considered. Under a rolling-window dispatch model where the operator centrally dispatches generation and consumption under…

Systems and Control · Electrical Eng. & Systems 2021-01-26 Cong Chen , Lang Tong , Ye Guo

Volatile electrical energy prices are a challenge and an opportunity for small and medium-size companies in energy-intensive industries. By using electrical energy storage and/or an adaptation of production processes, companies can…

Optimization and Control · Mathematics 2023-11-21 Michael Stiglmayr , Svenja Uhlemeyer , Björn Uhlemeyer , Markus Zdrallek

To mitigate global climate change, distributed energy resources (DERs), such as distributed generators, flexible loads, and energy storage systems (ESSs), have witnessed rapid growth in power distribution systems. When properly managed,…

Optimization and Control · Mathematics 2025-08-21 Rui Xie , Yue Chen

The transformation of the electricity sector is a main element of the transition to a decarbonized economy. Conventional generators powered by fossil fuels have to be replaced by variable renewable energy (VRE) sources in combination with…

General Economics · Economics 2021-10-07 Javier López Prol , Wolf-Peter Schill
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