Profitability of Merchant Investments in Battery Energy Storage Systems: Methods and Case Studies
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IEEE Transactions on Power Systems
We observe suitably located energy storage systems are able to collect significant revenue through spatiotemporal arbitrage in congested transmission networks. However, transmission capacity expansion can significantly reduce or eliminate this source of revenue. Investment decisions by merchant storage operators must, therefore, account for the consequences of potential investments in transmission capacity by central planners. This paper presents a tri-level model to co-optimize merchant electrochemical storage siting and sizing with centralized transmission expansion planning. The upper level takes the merchant storage owner's perspective and aims to maximize the lifetime profits of the storage, while ensuring a given rate of return on investments. The middle level optimizes centralized decisions about transmission expansion. The lower level simulates market clearing. The proposed model is recast as a bi-level equivalent, which is solved using the column-and-constraint generation technique. A case study based on a 240-bus, 448-line testbed of the Western Electricity Coordinating Council interconnection demonstrates the usefulness of the proposed tri-level model.
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Grid resilience is a concept related to a power system's ability to continue operating and delivering power even in the event that low probability, high-consequence disruptions such as hurricanes, earthquakes, and cyber-attacks occur. Grid resilience objectives focus on managing and, ideally, minimizing potential consequences that occur as a result of these disruptions. Currently, no formal grid resilience definitions, metrics, or analysis methods have been universally accepted. This document describes an effort to develop and describe grid resilience metrics and analysis methods. The metrics and methods described herein extend upon the Resilience Analysis Process (RAP) developed by Watson et al. for the 2015 Quadrennial Energy Review. The extension allows for both outputs from system models and for historical data to serve as the basis for creating grid resilience metrics and informing grid resilience planning and response decision-making. This document describes the grid resilience metrics and analysis methods. Demonstration of the metrics and methods is shown through a set of illustrative use cases.
IEEE Transactions on Power Systems
Energy storage (ES) is a pivotal technology for dealing with the challenges caused by the integration of renewable energy sources. It is expected that a decrease in the capital cost of storage will eventually spur the deployment of large amounts of ES. These devices will provide transmission services, such as spatiotemporal energy arbitrage, i.e., storing surplus energy from intermittent renewable sources for later use by loads while reducing the congestion in the transmission network. This paper proposes a bilevel program that determines the optimal location and size of storage devices to perform this spatiotemporal energy arbitrage. This method aims to simultaneously reduce the system-wide operating cost and the cost of investments in ES while ensuring that merchant storage devices collect sufficient profits to fully recover their investment cost. The usefulness of the proposed method is illustrated using a representative case study of the ISO New England system with a prospective wind generation portfolio.
IEEE Power and Energy Society General Meeting
FERC order 755 and FERC order 784 provide pay-for-performance requirements and direct utilities and independent system operators to consider speed and accuracy when purchasing frequency regulation. Independent System Operators (ISOs) have differing implementations of pay-for-performance. This paper focuses on the PJM implementation. PJM is a regional transmission organization in the northeastern United States that serves 13 states and the District of Columbia. PJM's implementation employs a two part payment based on the Regulation Market Capability Clearing price (RMCCP) and the Regulation Market Performance Clearing Price (RMPCP). The performance credit includes a mileage ratio. Both the RMCCP and RMPCP employ an actual performance score. Using the PJM remuneration model, this paper outlines the calculations required to estimate the maximum potential revenue from participation in arbitrage and regulation in day-ahead markets using linear programming. Historical PJM data from 2014 and 2015 was then used to evaluate the maximum potential revenue from a 5 MWh, 20 MW system based on the Beacon Power Hazle Township flywheel plant. Finally, a heuristic trading algorithm that does not require perfect foresight was evaluated against the results of the optimization algorithm.
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The SunShot Initiative is focused on reducing cost to improve competitiveness with respect to other electricity generation options. The goal of the Sandia Transmission Grid Integration (TGI) program is to reduce grid access barriers for solar generation. Sandia’s three-year TGI work was divided into five objectives.
IEEE Power and Energy Society General Meeting
This paper outlines the calculations required to estimate the maximum potential revenue from participation in arbitrage and regulation in day-ahead markets using linear programming. Then, we use historical Electricity Reliability Council of Texas (ERCOT) data from 2011-2013 to evaluate the maximum potential revenue from a hypothetical 32 MWh, 8 MW system. We investigate the maximum potential revenue from two different scenarios: arbitrage only and arbitrage combined with regulation. This analysis was performed for each load zone over the same period to show the impact of location and to identify trends in the opportunities for energy storage. Our analysis shows that, with perfect foresight, participation in the regulation market would have produced more than twice the revenue compared to arbitrage in the ERCOT market in 2011-2013. Over the last three years, there has been a significant decrease in the potential revenue for an energy storage system. We also quantify the impact of location on potential revenue.
IEEE Transactions on Power Systems
We propose a mathematical programming-based approach to optimize the security-constrained unit commitment problem with a full AC transmission network representation. Our approach is based on our previously introduced successive linear programming (SLP) approach to solving the non-linear, nonconvex AC optimal power flow (ACOPF) problem. By linearizing the ACOPF, we are able to leverage powerful commercial mixed-integer solvers to iteratively optimize the combined unit commitment plus ACOPF model. We demonstrate our approach on six-bus, IEEE RTS-96, and IEEE 118-bus test systems. We perform a comparative analysis of the relative impacts of singlebus, DC, and AC transmission network models on the unit commitment and dispatch solutions and their associated costs.
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This report has been written for the Department of Energy’s Energy Policy and Systems Analysis Office to inform their writing of the Quadrennial Energy Review in the area of energy resilience. The topics of measuring and increasing energy resilience are addressed, including definitions, means of measuring, and analytic methodologies that can be used to make decisions for policy, infrastructure planning, and operations. A risk-based framework is presented which provides a standard definition of a resilience metric. Additionally, a process is identified which explains how the metrics can be applied. Research and development is articulated that will further accelerate the resilience of energy infrastructures.
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IEEE Proceedings
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IEEE Power and Energy Society General Meeting
Inter-area oscillations are one of the factors that limit transmission capacity in large interconnected systems. In this paper we investigate the effects of increasing wind generation on inter-area modes and propose the use of additional control schemes for wind plants for mitigation of inter-area oscillations. Control schemes include droop control and inertial emulation, which are originally aimed at improving transient stability. The sensitivities of inter-area modes to droop control and inertial emulation gains are identified. Implementation of suggested controls schemes via collocated energy storage devices is also explored. © 2013 IEEE.
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