Techno-economic feasible region of electrochemical energy storage participating in the day-ahead electricity market trading

Jie Yan, Dingchang Tan, Yamin Yan, Haoran Zhang, Shuang Han and Yongqian Liu

Energy, 2025, vol. 314, issue C

Abstract: As electrochemical energy storage (EES) becomes increasingly prevalent in electricity markets, accurately assessing their techno-economic performance is crucial. This paper introduces the novel concept of the techno-economic feasible region (TEFR) for EES participation in electricity markets, providing a new analytical framework for optimizing EES market strategies. The main contributions are: 1) A bilevel game-theoretic model is developed for both independent energy storage (IES) and wind-storage system (WSS) to capture the complex interactions between EES and the independent system operator (ISO); 2) A systematic method is proposed for determining TEFR, and geometric metrics including surface area, normalized volume-to-surface area ratio, and roundness are introduced to quantify TEFR characteristics. Based on the IEEE 24-bus system analysis, it is found that WSS exhibits 10–15 % larger operational boundaries than IES, but with similar utilization efficiency; 3) Sensitivity analyses reveal that charge/discharge power has the most significant impact on TEFR characteristics, with the normalized volume-to-surface area ratio increasing by 10.8 % and roundness rising by 124 % when power increases from 28 MW to 30 MW. This study provides an important theoretical foundation for optimizing EES design and market participation strategies.

Keywords: Energy storage; Spot market; Flexibility; Techno-economic feasible region (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:314:y:2025:i:c:s0360544224040726

DOI: 10.1016/j.energy.2024.134294

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