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Long-duration energy storage (LDES) is a key component for fully renewable, sector-coupled energy systems based on wind and solar. While capacity expansion planning has begun to take into account interannual weather variability, it often…

General Economics · Economics 2025-06-11 Felix Schmidt

The ability of deeply decarbonised power systems to ensure adequacy may increasingly depend on long-duration energy storage (LDES). A central challenge is whether capacity markets (CMs), originally designed around thermal generation, can…

Systems and Control · Electrical Eng. & Systems 2025-12-30 Adam Suski , Elina Spyrou , Richard Green

The transition to a fully decarbonised electricity system depends on integrating new technologies that ensure reliability alongside sustainability. However, missing risk markets hinder investment in reliability-enhancing technologies by…

Systems and Control · Electrical Eng. & Systems 2025-10-16 Andreas C. Makrides , Adam Suski , Elina Spyrou

Long-duration energy storage (LDES) assets can be fundamental resources for the next-generation power systems. However, LDES technologies are still immature and their future technology costs remain highly uncertain. In this context, we…

Optimization and Control · Mathematics 2025-05-13 Alexandre Moreira , Patricia Silva , Miguel Heleno , Andre Marcato

Existing modeling approaches for long-duration energy storage (LDES) are often based either on an oversimplified representation of power system operations or limited representation of storage technologies, e.g., evaluation of only a single…

Systems and Control · Electrical Eng. & Systems 2024-01-31 Omar J. Guerra , Sourabh Dalvi , Amogh A. Thatte , Brady Cowiestoll , Jennie Jorgenson , Bri-Mathias Hodge

Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations. While administratively defined mechanisms have most commonly…

Trading and Market Microstructure · Quantitative Finance 2024-03-25 Han Shu , Jacob Mays

Long-duration energy storage (LDES) is vital for decarbonizing the energy system but faces economic challenges, including high upfront costs, low trading frequency, and limited revenue in current electricity markets. Compressed Air Energy…

Physics and Society · Physics 2025-11-06 Danlei Yang , Yang Wang , Jihong Wang , Zhenhua Rui , Wei He

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…

Long duration energy storage (LDES) may become a critical technology for the decarbonization of the power sector, as current commercially available Li-ion battery storage technologies cannot cost-effectively shift energy to address…

Systems and Control · Electrical Eng. & Systems 2024-04-29 Gabriel Mantegna , Wilson Ricks , Aneesha Manocha , Neha Patankar , Dharik Mallapragada , Jesse Jenkins

This paper introduces an economic framework to assess optimal longevity risk transfers between institutions, focusing on the interactions between a buyer exposed to long-term longevity risk and a seller offering longevity protection. While…

General Economics · Economics 2026-05-26 David Landriault , Bin Li , Hong Li , Yuanyuan Zhang

The urgent need for decarbonization in the energy sector has led to an increased emphasis on the integration of renewable energy sources, such as wind and solar, into power grids. While these resources offer significant environmental…

Optimization and Control · Mathematics 2024-01-25 Patricia Silva , Alexandre Moreira , Miguel Heleno , Andre Luis Marcato

To make well-informed investment decisions, energy system stakeholders require reliable cost frameworks for demand response (DR) and storage technologies. While the levelised cost of storage (LCOS) permits comprehensive cost comparisons…

Systems and Control · Electrical Eng. & Systems 2025-12-08 Jacob Thrän , Tim C. Green , Robert Shorten

Flexibility options, such as demand response, energy storage and interconnection, have the potential to reduce variation in electricity prices between different future scenarios, therefore reducing investment risk. Moreover, investment in…

General Economics · Economics 2021-10-11 Thomas Möbius , Iegor Riepin , Felix Müsgens , Adriaan H. van der Weijde

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

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 develop multi-stage linear decision rules (LDRs) for dynamic power system generation and energy storage investment planning under uncertainty and propose their chance-constrained optimization with performance guarantees. First, the…

Optimization and Control · Mathematics 2023-03-14 Vladimir Dvorkin , Dharik Mallapragada , Audun Botterud

High penetrations of intermittent renewable energy resources in the power system require large balancing reserves for reliable operations. Aggregated and coordinated behind-the-meter loads can provide these fast reserves, but represent…

Optimization and Control · Mathematics 2019-10-03 Mahraz Amini , Mads Almassalkhi

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

One of the major issues with the integration of renewable energy sources into the power grid is the increased uncertainty and variability that they bring. If this uncertainty is not sufficiently addressed, it will limit the further…

Optimization and Control · Mathematics 2017-05-15 Joshua Comden , Zhenhua Liu , Yue Zhao

Studies looking at electricity market designs for very high shares of wind and solar often conclude that the energy-only market will break down. Without fuel costs, it is said that there is nothing to set prices. Symptoms of breakdown…

General Economics · Economics 2025-10-29 Tom Brown , Fabian Neumann , Iegor Riepin
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