Strategic Operations and Planning of Stand-alone and Hybrid Energy Storage Facilities
Date
2022-08
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Abstract
Interest in energy storage integration in the wholesale electricity market has increased in recent years due to favorable market policies and technology cost reduction. As the electrical grid transitions to integrating clean energy resources that are predominantly renewables, energy storage can play an important role in reducing the non-performance penalty of these resources and provide several other value propositions. This thesis focuses on the strategic operations and planning of price-making stand-alone and hybrid energy storage facilities where hybrid storage facilities are defined as energy storage co-located with an intermittent generation. A price-making generation resource can influence the market price; therefore, this thesis examines the interaction of price-making stand-alone and hybrid storage resources with the wholesale market in order to maximize facility profit, outlines the impact on market efficiency and social welfare caused by the said participation.
To this end, first, a self-interested stand-alone energy storage is modeled to reveal market design choices that can yield inefficiency in the presence of strategic behavior. The proposed model outlines storage behavior under two different offer and state-of-energy management strategies. The objective is to uncover potential perverse market outcomes that policymakers and market designers should be cognizant of when designing market rules for storage participation. The model is then modified and extended to investigate the strategic participation of intermittent and storage resources behind the same point of interconnection under two different configurations namely, co-located and integrated hybrid storage. The two proposed models examine the profit-maximizing behavior of the combined facilities and identify the operational constraints that separate the models in terms of operations and dispatch of the units. Finally, a planning model is proposed for a renewable-coupled storage facility to derive insights regarding the impact of market power and strategic price-making behavior on investment decisions in energy storage and transmission.
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Keywords
Energy storage, Renewable energy, Electricity market, Strategic behavior, Bilevel programming
Citation
Bhattacharjee, S. (2022). Strategic Operations and Planning of Stand-alone and Hybrid Energy Storage Facilities (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca.