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The decreasing cost of energy storage technologies coupled with their potential to bring significant benefits to electric power networks have kindled research efforts to design both market and regulatory frameworks to facilitate the…

Optimization and Control · Mathematics 2017-04-03 Daniel Munoz-Alvarez , Eilyan Bitar

An energy storage technology is valuable if it makes energy systems cheaper. Traditional ways to improve storage technologies are to reduce their costs; however, the cheapest energy storage is not always the most valuable in energy systems.…

Systems and Control · Electrical Eng. & Systems 2022-07-12 Maximilian Parzen , Fabian Neumann , Addrian H. Van Der Weijde , Daniel Friedrich , Aristides Kiprakis

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

Electric power systems are increasingly turning to energy storage systems to balance supply and demand. But how much storage is required? What is the optimal volume of storage in a power system and on what does it depend? In addition, what…

Theoretical Economics · Economics 2025-11-27 Darryl Biggar , Mohammad Reza Hesamzadeh

Utilizing energy storage solutions to reduce the need for traditional transmission investments has been recognized by system planners and supported by federal policies in recent years. This work demonstrates the need for detailed…

Systems and Control · Electrical Eng. & Systems 2025-12-17 David Sehloff , Jonghwan Kwon , Mahdi Mehrtash , Todd Levin , Benjamin F. Hobbs

In this paper, we propose a model of decentralized energy storages, who serve as instruments to shift energy supply intertemporally. From storages' perspective, we investigate their optimal buying or selling decisions under market…

Optimization and Control · Mathematics 2017-02-27 Qiao-Chu He , Yun Yang , Baosen Zhang

Energy storage promotes the integration of renewables by operating with charge and discharge policies that balance an intermittent power supply. A key challenge in this emerging sector is how to optimize the operation of storage assets…

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

In the context of energy transition, industrial plants that heavily rely on electricity face more and more price volatility. To continue operating in these conditions, the directors become continually more willing to increase their…

Optimization and Control · Mathematics 2021-04-20 Thibaut Cuvelier

High shares of variable renewable energy necessitate substantial energy storage capacity. However, it remains unclear how to design a market that, on the one hand, ensures a stable and sufficient income for storage firms, and, on the other…

Systems and Control · Electrical Eng. & Systems 2024-02-06 Aviad Navon , Juri Belikov , Ariel Orda , Yoash Levron

We investigate the profitability and risk of energy storage arbitrage in electricity markets under price uncertainty, exploring both robust and chance-constrained optimization approaches. We analyze various uncertainty representations,…

Optimization and Control · Mathematics 2025-01-16 Yiqian Wu , Bolun Xu , James Anderson

Because energy storage systems have better ramping characteristics than traditional generators, their participation in frequency regulation should facilitate the balancing of load and generation. However, they cannot sustain their output…

Optimization and Control · Mathematics 2016-02-20 Bolun Xu , Yury Dvorkin , Daniel S. Kirschen , C. A. Silva-Monroy , Jean-Paul Watson

Hydro storage system optimization is becoming one of the most challenging tasks in Energy Finance. While currently the state-of-the-art of the commercial software in the industry implements mainly linear models, we would like to introduce…

Risk Management · Quantitative Finance 2017-08-28 Simone Farinelli , Luisa Tibiletti

Low-carbon societies will need to store vast amounts of electricity to balance intermittent generation from wind and solar energy, for example, through frequency regulation. Here, we derive an analytical solution to the decision-making…

Optimization and Control · Mathematics 2024-03-27 Dirk Lauinger , François Vuille , Daniel Kuhn

This letter introduces a method to manage energy storage in electricity grids. Starting from the stochastic characterization of electricity generation and demand, we propose an equation that relates the storage level for every time-step as…

Systems and Control · Computer Science 2016-12-05 Pedro H. J. Nardelli , Hirley Alves

The transition to renewable energy systems causes increased decentralization of the energy supply. Solar parks are built to increase renewable energy penetration and to supply local communities that become increasingly self-sufficient.…

Systems and Control · Electrical Eng. & Systems 2022-09-12 Jan Eise Fokkema , Michiel A. J. uit het Broek , Albert H. Schrotenboer , Martin J. Land , Nicky D. Van Foreest

The expansion of renewable energy sources leads to volatility in electricity generation within energy systems. Subsurface storage of hydrogen in salt caverns can play an important role in long-term energy storage, but their global potential…

General Economics · Economics 2025-04-18 David Franzmann , Thora Schubert , Heidi Heinrichs , Peter A. Kukla , Detlef Stolten

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

A proposal to store unsteady energy in potential energy via lifting masses with a rough quantitative overview. Some applications and methods to harvest the potential energy are also given. A focus is put on photovoltaically generated…

General Physics · Physics 2012-02-14 Nadja Kutz

Securing an adequate supply of dispatchable resources is critical for keeping a power system reliable under high penetrations of variable generation. Traditional resource adequacy mechanisms are poorly suited to exploiting the growing…

Systems and Control · Electrical Eng. & Systems 2022-10-27 Farhad Billimoria , Filiberto Fele , Iacopo Savelli , Thomas Morstyn , Malcolm McCulloch
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