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The use of energy storage to balance electric grids is increasing and, with it, the importance of operational optimisation from the twin viewpoints of cost and system stability. In this paper we assess the real option value of balancing…

最优化与控制 · 数学 2016-10-19 John Moriarty , Jan Palczewski

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 high variability of renewable energy resources presents significant challenges to the operation of the electric power grid. Conventional generators can be used to mitigate this variability but are costly to operate and produce carbon…

最优化与控制 · 数学 2012-04-13 Han-I Su , Abbas El Gamal

Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged…

物理与社会 · 物理学 2009-11-11 Ettore Bompard , Yuchao Ma , Elena Ragazzi

Energy storage resources must consider both price uncertainties and their physical operating characteristics when participating in wholesale electricity markets. This is a challenging problem as electricity prices are highly volatile, and…

机器学习 · 计算机科学 2023-06-02 Yousuf Baker , Ningkun Zheng , Bolun Xu

Wind energy has been increasingly adopted to mitigate climate change. However, the variability of wind energy causes wind curtailment, resulting in considerable economic losses for wind farm owners. Wind curtailment can be reduced using…

系统与控制 · 电气工程与系统科学 2023-08-29 Jinhao Li , Changlong Wang , Hao Wang

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.…

系统与控制 · 电气工程与系统科学 2022-07-12 Maximilian Parzen , Fabian Neumann , Addrian H. Van Der Weijde , Daniel Friedrich , Aristides Kiprakis

This paper studies the efficiency of battery storage operations in electricity markets by comparing the social welfare gain achieved by a central planner to that of a decentralized profit-maximizing operator. The problem is formulated in a…

计算机科学与博弈论 · 计算机科学 2026-02-24 Zhile Jiang , Xinhao Nie , Stratis Skoulakis

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…

最优化与控制 · 数学 2026-05-12 Dirk Lauinger , Luc Coté , Andy Sun

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

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…

最优化与控制 · 数学 2017-02-27 Qiao-Chu He , Yun Yang , Baosen Zhang

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…

综合经济学 · 经济学 2025-10-29 Tom Brown , Fabian Neumann , Iegor Riepin

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…

Large scale electricity storage is set to play an increasingly important role in the management of future energy networks. A major aspect of the economics of such projects is captured in arbitrage, i.e. buying electricity when it is cheap…

最优化与控制 · 数学 2015-05-25 James Cruise , Lisa Flatley , Richard Gibbens , Stan Zachary

The growing amount of intermittent renewables in power generation creates challenges for real-time matching of supply and demand in the power grid. Emerging ancillary power markets provide new incentives to consumers (e.g., electrical…

系统与控制 · 计算机科学 2016-02-09 Hao Chen , Zhenhua Liu , Ayse K. Coskun , Adam Wierman

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…

交易与市场微观结构 · 定量金融 2024-03-25 Han Shu , Jacob Mays

The recent rise of renewable energy produced by many decentralized sources yields interesting market design challenges for electrical grids. Balancing supply and demand in such networks is both a temporal and spatial challenge due to…

计算机科学与博弈论 · 计算机科学 2025-08-11 Simon Krogmann , Pascal Lenzner , Alexander Skopalik , Tobias Sträubig

To ensure security of supply in the power sector, many countries are already using or discussing the introduction of capacity mechanisms. Two main types of such mechanisms include capacity markets and capacity reserves. Simultaneously, the…

综合经济学 · 经济学 2025-06-18 Franziska Klaucke , Karsten Neuhoff , Alexander Roth , Wolf-Peter Schill , Leon Stolle

It is likely that electricity storage will play a significant role in the balancing of future energy systems. A major challenge is then that of how to assess the contribution of storage to capacity adequacy, i.e. to the ability of such…

最优化与控制 · 数学 2019-01-16 James Cruise , Stan Zachary

The increasing penetration of renewable energy in recent years has led to more uncertainties in power systems. In order to maintain system reliability and security, electricity market operators need to keep certain reserves in the…

最优化与控制 · 数学 2015-12-21 Hongxing Ye , Zuyi Li