A market feedback framework for improved estimates of the arbitrage value of energy storage using price-taker models

Michael Ikechi Emmanuel and Paul Denholm

Applied Energy, 2022, vol. 310, issue C, No S0306261921015130

Abstract: Price-taker (PT) models are often used to assess the potential value or revenue of energy arbitrage opportunities for energy storage in wholesale markets. But as greater amounts of energy storage are deployed on the grid, current PT models fail to predict the effects that energy storage itself can have on market prices. This can lead to an overestimation of the economic value of storage and an inability to capture price suppression.

Keywords: Arbitrage; Price-taker model; Gradient boosting regressor; Electricity price suppression; Energy storage (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.apenergy.2021.118250

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