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We investigate the problem of characterizing the economic value of energy storage capacity to a wind power producer (WPP) that sells its energy in a conventional two-settlement electricity market. The WPP can offer a forward contract to…

Optimization and Control · Mathematics 2018-10-01 Eilyan Bitar , Pramod Khargonekar , Kameshwar Poolla

We consider an energy storage problem involving a wind farm with a forecasted power output, a stochastic load, an energy storage device, and a connection to the larger power grid with stochastic prices. Electricity prices and wind power…

Optimization and Control · Mathematics 2020-02-04 Joseph L. Durante , Juliana Nascimento , Warren B. Powell

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

In this study, an optimization problem is proposed in order to obtain the maximum economic benefit from wind farms with variable and intermittent energy generation in the day ahead and balancing electricity markets. This method, which is…

Econometrics · Economics 2018-06-15 Akın Taşcikaraoğlu , Ozan Erdinç

The large shares of wind power generation in electricity markets motivate higher levels of operating reserves. However, current reserve sizing practices fail to account for important topological aspects that might hinder their deployment,…

Systems and Control · Electrical Eng. & Systems 2020-04-27 Nicola Viafora , Stefanos Delikaraoglou , Pierre Pinson , Gabriela Hug , Joachim Holbøll

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

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

Recent studies show that the fast growing expansion of wind power generation may lead to extremely high levels of price volatility in wholesale electricity markets. Storage technologies, regardless of their specific forms e.g. pump-storage…

Optimization and Control · Mathematics 2017-08-02 Amin Masoumzadeh , Ehsan Nekouei , Tansu Alpcan , Deb Chattopadhyay

Energy storage technologies are key to improving grid flexibility in the presence of increasing amounts of intermittent renewable generation. We propose an insurance contract that suitably compensates energy storage systems for providing…

Systems and Control · Electrical Eng. & Systems 2020-11-23 Nayara Aguiar , Vijay Gupta

Quantity and price risks are key uncertainties market participants face in electricity markets with increased volatility, for instance, due to high shares of renewables. From day ahead until real-time, there is a large variation in the best…

Methodology · Statistics 2025-02-21 Paul E. Seifert , Emil Kraft , Steffen Bakker , Stein-Erik Fleten

This paper presents models for renewable energy systems with storage, and considers its optimal operation. We model and simulate wind and solar power production using stochastic differential equations as well as storage of the produced…

Optimization and Control · Mathematics 2022-12-20 Nicola Cantisani , Tobias K. S. Ritschel , Christian A. Thilker , Henrik Madsen , John Bagterp Jørgensen

Increasing wind turbines (WT) penetration and low carbon demand can potentially lead to two different flow peaks, generation and load, within distribution networks. This will not only constrain WT penetration but also pose serious threats…

Optimization and Control · Mathematics 2018-02-13 Xiao Yanchi , Bruce Vargas , Mohammd Hamdi

We study the optimal trading policies for a wind energy producer who aims to sell the future production in the open forward, spot, intraday and adjustment markets, and who has access to imperfect dynamically updated forecasts of the future…

Trading and Market Microstructure · Quantitative Finance 2016-10-17 Zongjun Tan , Peter Tankov

Wind integration in power grids is very difficult, essentially because of the uncertain nature of wind speed. Forecasting errors on output from wind turbines may have costly consequences. For instance, power might be bought at highest price…

Optimization and Control · Mathematics 2016-04-28 Luckny Zéphyr , C. Lindsay Anderson

Battery Energy Storage Systems (BESS) can mitigate effects of intermittent energy production from renewable energy sources and play a critical role in peak shaving and demand charge management. To optimally size the BESS from an economic…

Optimization and Control · Mathematics 2017-03-01 Abdulelah H Habib , Vahid R. Disfani , Jan Kleissl , Raymond de Callafon

The rapid expansion of wind and solar energy leads to an increasing volatility in the electricity generation. Previous studies have shown that storage devices provide an opportunity to balance fluctuations in the power grid. An economical…

Optimization and Control · Mathematics 2017-11-06 Lars Siemer , Wided Medjroubi

Offshore wind farms (OWFs) are set to significantly contribute to global decarbonization efforts. Developers often use a sequential approach to optimize design variables and market participation for grid-integrated offshore wind farms.…

Systems and Control · Electrical Eng. & Systems 2025-04-14 Himanshu Sharma , Wei Wang , Bowen Huang , Buxin She , Thiagarajan Ramachandaran

The increasing reliance on renewable energy generation means that storage may well play a much greater role in the balancing of future electricity systems. We show how heterogeneous stores, differing in capacity and rate constraints, may be…

Optimization and Control · Mathematics 2021-06-14 Stan Zachary , Simon Tindemans , Michael Evans , James Cruise , David Angeli

Due to the limited predictability of wind power and other stochastic generation, trading this energy in competitive electricity markets is challenging. This paper derives revenue-maximising and risk-constrained strategies for stochastic…

General Finance · Quantitative Finance 2018-05-31 Jethro Browell

Energy storage can facilitate the integration of renewable energy resources by providing arbitrage and ancillary services. Jointly optimizing energy and ancillary services in a centralized electricity market reduces the system's operating…

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