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This paper studies the duopoly competition between renewable energy suppliers with or without energy storage in a local energy market. The storage investment brings the benefits of stabilizing renewable energy suppliers' outputs, but it…

系统与控制 · 电气工程与系统科学 2019-10-15 Dongwei Zhao , Hao Wang , Jianwei Huang , Xiaojun Lin

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…

系统与控制 · 电气工程与系统科学 2024-02-06 Aviad Navon , Juri Belikov , Ariel Orda , Yoash Levron

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…

最优化与控制 · 数学 2017-08-02 Amin Masoumzadeh , Ehsan Nekouei , Tansu Alpcan , Deb Chattopadhyay

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…

综合经济学 · 经济学 2021-10-07 Javier López Prol , Wolf-Peter Schill

Arbitrage is one important revenue source for energy storage in electricity markets. However, a large amount of storage in the market will impact the energy price and reduce potential revenues. This can lead to strategic behaviors of…

综合金融 · 定量金融 2022-11-17 Dongwei Zhao , Mehdi Jafari , Audun Botterud , Apurba Sakti

We study how storage, operating as a price maker within a market environment, may be optimally operated over an extended period of time. The optimality criterion may be the maximisation of the profit of the storage itself, where this profit…

最优化与控制 · 数学 2016-06-20 James Cruise , Lisa Flatley , Stan Zachary

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…

计算机科学与博弈论 · 计算机科学 2015-07-02 Josh A. Taylor , Johanna L. Mathieu , Duncan S. Callaway , Kameshwar Poolla

In this paper, we study the strategic investment problem of battery energy storage systems (BESSs) in the wholesale electricity market from the perspective of BESSs owners. Large-scale BESSs planning without considering the possible…

最优化与控制 · 数学 2023-08-01 Ang Li , Yubo Wang , Lei Fan , Jiming Peng

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…

最优化与控制 · 数学 2017-03-01 Abdulelah H Habib , Vahid R. Disfani , Jan Kleissl , Raymond de Callafon

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…

理论经济学 · 经济学 2026-05-19 Lizhong Zhang , Junqi Liu , Jianxiao Wang , Lei Zhu

This paper compares the participation of Renewable-only Virtual Power Plants (RVPPs) and grid-scale Electrical Storage Systems (ESSs) in energy and reserve markets, evaluating their technical performance, market strategies, and economic…

系统与控制 · 电气工程与系统科学 2025-07-31 Hadi Nemati , Ignacio Egido , Pedro Sánchez-Martín , Álvaro Ortega

In electricity systems supplied by renewable energy sources (RES), storage operators shift energy across time, helping maintain system adequacy. However, characterizing their strategic role and identifying the conditions under which…

综合经济学 · 经济学 2025-11-18 Arega Getaneh Abate , Dogan Keles , Salim Hassi , Xiufeng Liu , Xiao-Bing Zhang

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.…

最优化与控制 · 数学 2026-03-24 Dirk Lauinger , Deepjyoti Deka , Sungho Shin

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…

数理金融 · 定量金融 2024-10-17 Roxana Dumitrescu , Redouane Silvente , Peter Tankov

Motivated by the need of assessing the optimal allocation of battery energy storage services across various markets and the corresponding impact on market operations, an optimization framework is proposed in this work to coordinate the…

系统与控制 · 电气工程与系统科学 2020-02-25 Reza Khalilisenobari , Meng Wu

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…

Economic withholding in electricity markets refers to generators bidding higher than their true marginal fuel cost, and is a typical approach to exercising market power. However, existing market designs require storage to design bids…

系统与控制 · 电气工程与系统科学 2025-05-20 Xin Qin , Ioannis Lestas , Bolun Xu

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,…

系统与控制 · 电气工程与系统科学 2025-06-26 Yun Xu , Yunxiao Bai , Yunyong Zhang , Peng Wang , Xuelin Wang , Jiqun Guo , Kaijun Xie , Rusheng Zhao

This paper proposes a bi-level optimization framework to investigate the optimal market operation strategies of price-maker battery energy storage systems (BESSs) in real-time energy, spinning reserve, and pay as performance regulation…

系统与控制 · 电气工程与系统科学 2022-01-20 Reza Khalilisenobari , Meng Wu

The power system needs more transmission capacity to deal with the increasing integration of renewable energy resources. The battery energy storage systems (BESSs) are effective to enhance the grid capacity and relieve the transmission…

系统与控制 · 电气工程与系统科学 2021-10-18 Zhongyang Zhao , Caisheng Wang , Masoud H. Nazari
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