Optimal strategies for operating energy storage in an arbitrage market

Lisa Flatley, Robert Mackay and Michael Waterson
Additional contact information
Lisa Flatley: Mathematics Institute, University of Warwick
Robert Mackay: Mathematics Institute, University of Warwick

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: We characterise profit-maximising operating strategies, over some time horizon, for an energy store which is trading in an arbitrage market. Our theory allows for leakage, operating inefficiencies and general cost functions. In the special case where the operating cost of a store depends only on its instantaneous power ouput (or input), we present an algorithm to determine the optimal strategies. A key feature is that this algorithm is localised in time, in the sense that the action of the store at a time only requires information about electricity prices over some subinterval of time.creation-date: 2014

Date: 2014
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/w ... rp_1048_waterson.pdf

Related works:
Working Paper: Optimal strategies for operating energy storage in an arbitrage market (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:1048

Access Statistics for this paper

More papers in The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Nash ().