Operating and Investment Models for Energy Storage Systems

Marija Miletić, Hrvoje Pandžić and Dechang Yang
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Marija Miletić: Faculty of Electrical Engineering and Computing, University of Zagreb, Unska ulica No. 3, 10000 Zagreb, Croatia
Hrvoje Pandžić: Faculty of Electrical Engineering and Computing, University of Zagreb, Unska ulica No. 3, 10000 Zagreb, Croatia
Dechang Yang: College of Information and Electrical Engineering, China Agricultural University, No. 17 Qinghuadonglu, Haidian, Beijing 100083, China

Energies, 2020, vol. 13, issue 18, 1-33

Abstract: In the context of climate changes and the rapid growth of energy consumption, intermittent renewable energy sources (RES) are being predominantly installed in power systems. It has been largely elucidated that challenges that RES present to the system can be mitigated with energy storage systems (ESS). However, besides providing flexibility to intermittent RES, ESS have other sources of revenue, such as price arbitrage in the markets, balancing services, and reducing the cost of electricity procurement to end consumers. In order to operate the ESS in the most profitable way, it is often necessary to make optimal siting and sizing decisions, and to determine optimal ways for the ESS to participate in a variety of energy and ancillary service markets. As a result, many publications on ESS models with various goals and operating environments are available. This paper aims at presenting the results of these papers in a structured way. A standard ESS model is first outlined, and that is followed by a literature review on operational and investment ESS models at the transmission and distribution levels. Both the price taking and price making models are elaborated on and presented in detail. Based on the examined body of work, the paper is concluded with recommendations for future research paths in the analysis of ESS.

Keywords: mathematical modelling; energy storage systems; electricity markets; power system planning; power system operation (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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