Publications
Revenue Opportunities for Electric Storage Resources in the Southwest Power Pool Integrated Marketplace
This paper explores the revenue potential for electric storage resources (ESRs), also referred to as electrical energy storage, in the Southwest Power Pool Integrated Marketplace. In particular, opportunities in the day-ahead market with the energy and frequency regulation products are considered. The revenue maximization problem is formulated as a linear program model, where an ESR seeks to maximize its revenue through the available revenue streams. The ESR has perfect foresight of historical prices and determines the optimal policy accordingly. A case study using FY2018 data shows that frequency regulation services are the most lucrative for revenue potential. This paper also explores different methods of using area control error data to infer the regulation control signal and the consequent effect on the optimization. Finally, the paper conducts a sensitivity analysis of ESR payback period to energy capacity and power rating.