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Electricity markets are experiencing a rapid increase in energy storage unit participation. Unlike conventional generation resources, quantifying the competitive operation and identifying if a storage unit is exercising market power is…

Systems and Control · Electrical Eng. & Systems 2025-01-16 Yiqian Wu , Bolun Xu , James Anderson

The rapid growth of battery energy storage in wholesale electricity markets calls for a deeper understanding of storage operators' bidding strategies and their market impacts. This study examines energy storage bidding data from the…

Systems and Control · Electrical Eng. & Systems 2025-01-24 Neal Ma , Ningkun Zheng , Ning Qi , Bolun Xu

This paper proposes a novel method to generate bid bounds that can serve as offer caps for energy storage in electricity markets to help reduce system costs and regulate potential market power exercises. We derive the bid bounds based on a…

Theoretical Economics · Economics 2026-05-08 Ning Qi , Bolun Xu

Energy storage can absorb variability from the rising number of wind and solar power producers. Storage is different from the conventional generators that have traditionally balanced supply and demand on fast time scales due to its hard…

Computer Science and Game Theory · Computer Science 2015-07-02 Josh A. Taylor , Johanna L. Mathieu , Duncan S. Callaway , Kameshwar Poolla

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 proposes a market mechanism for multi-interval electricity markets with generator and storage participants. Drawing ideas from supply function bidding, we introduce a novel bid structure for storage participation that allows…

Optimization and Control · Mathematics 2021-10-18 Rajni Kant Bansal , Pengcheng You , Dennice F. Gayme , Enrique Mallada

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

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

Electricity distribution companies deploy battery storage to defer grid upgrades by reducing peak demand. In deregulated jurisdictions, such storage often sits idle because regulatory constraints bar participation in electricity markets.…

Optimization and Control · Mathematics 2026-03-24 Dirk Lauinger , Deepjyoti Deka , Sungho Shin

The growing integration of renewable energy sources necessitates adequate reserve capacity to maintain power balance. However, in market clearing, power companies with flexible resources may submit strategic bids to maximize profits,…

Systems and Control · Electrical Eng. & Systems 2025-06-26 Yun Xu , Yunxiao Bai , Yunyong Zhang , Peng Wang , Xuelin Wang , Jiqun Guo , Kaijun Xie , Rusheng Zhao

Electricity markets typically clear in two stages: a day-ahead market and a real-time market. In this paper, we propose market mechanisms for a two-stage multi-interval electricity market with energy storage, generators, and demand…

Optimization and Control · Mathematics 2024-03-08 Rajni Kant Bansal , Enrique Mallada , Patricia Hidalgo-Gonzalez

In this paper, we address an optimal management problem of community energy storage in the real-time electricity market under a stochastic renewable environment. In a real-time electricity market, complete market information may not be…

Systems and Control · Electrical Eng. & Systems 2020-11-30 Lirong Deng , Xuan Zhang , Tianshu Yang , Hongbin Sun , Shmuel S. Oren

Community electricity storage systems for multiple applications promise benefits over household electricity storage systems. More economical flexibility options such as demand response and sector coupling might reduce the market size for…

Systems and Control · Electrical Eng. & Systems 2020-11-12 Fabian Scheller , Robert Burkhardt , Robert Schwarzeit , Russell McKenna , Thomas Bruckner

The primary concerns of this paper are twofold: to understand the economic value of storage in the presence of ramp constraints and exogenous electricity prices, and to understand the implications of the associated optimal storage…

Optimization and Control · Mathematics 2012-11-09 Ali Faghih , Mardavij Roozbehani , Munther A. Dahleh

Energy storage is a key enabler towards a low-emission electricity system, but requires appropriate dispatch models to be economically coordinated with other generation resources in bulk power systems. This paper analyzes how different…

Optimization and Control · Mathematics 2022-07-26 Ningkun Zheng , Bolun Xu

Energy market designs with non-merchant storage have been proposed in recent years, with the aim of achieving optimal market integration of storage. In order to handle the time-linking constraints that are introduced in such markets,…

Optimization and Control · Mathematics 2024-09-10 Linde Frölke , Eléa Prat , Pierre Pinson , Richard M. Lusby , Jalal Kazempour

Interest in sustainability has increased the share of variable renewable energy sources (VRES) in power generation. Energy storage systems' potential to mitigate intermittencies from non-dispatchable VRES has enhanced their appeal. However,…

Systems and Control · Electrical Eng. & Systems 2020-03-11 Vilma Virasjoki , Afzal Siddiqui , Fabricio Oliveira , Ahti Salo

An increasing number of retail energy markets show price fluctuations, providing users with the opportunity to buy energy at lower than average prices. We propose to temporarily store this inexpensive energy in a battery, and use it to…

Networking and Internet Architecture · Computer Science 2012-12-06 Peter M. van de Ven , Nidhi Hegde , Laurent Massoulie , Theodoros Salonidis

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

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
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