Optimizing energy storage participation in emerging power markets
Files
Published version
Date
2015-12
Authors
Chen, Hao
Liu, Zhenhua
Coskun, Ayse K.
Wierman, Adam
Version
OA Version
Citation
Hao Chen, Zhenhua Liu, Ayse K Coskun, Adam Wierman. 2015. "Optimizing Energy Storage Participation in Emerging Power Markets." 2015 Sixth International Green and Sustainable Computing Conference (IGSC). DOI: 10.1109/IGCC.2015.7393718
Abstract
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 vehicles, data centers, and others) to perform demand response to help stabilize the electricity grid. A promising class of potential demand response providers includes energy storage systems (ESSs). This paper evaluates the benefits of using various types of novel ESS technologies for a variety of emerging smart grid demand response programs, such as regulation services reserves (RSRs), contingency reserves, and peak shaving. We model, formulate and solve optimization problems to maximize the net profit of ESSs in providing each demand response. Our solution selects the optimal power and energy capacities of the ESS, determines the optimal reserve value to provide as well as the ESS real-time operational policy for program participation. Our results highlight that applying ultra-capacitors and flywheels in RSR has the potential to be up to 30 times more profitable than using common battery technologies such as LI and LA batteries for peak shaving.