Market Evaluation of Energy Storage Systems Incorporating Technology-Specific Nonlinear Models
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IEEE Transactions on Power Systems
A generic constant-efficiency energy flow model is commonly used in techno-economic analyses of grid energy storage systems. In practice, charge and discharge efficiencies of energy storage systems depend on state of charge, temperature, and charge/discharge powers. Furthermore, the operating characteristics of energy storage devices are technology specific. Therefore, generic constant-efficiency energy flow models do not accurately capture the system performance. In this work, we propose to use technology-specific nonlinear energy flow models based on nonlinear operating characteristics of the storage devices. These models are incorporated into an optimization problem to find the optimal market participation of energy storage systems. We develop a dynamic programming method to solve the optimization problem and perform two case studies for maximizing the revenue of a vanadium redox flow battery (VRFB) and a Li-ion battery system in Pennsylvania New Jersey Maryland (PJM) interconnection's energy and frequency regulation markets.
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IEEE Power and Energy Society General Meeting
Different Federal Energy Regulator Commission (FERC) orders have provided the opportunity for battery energy storage systems (ESSs) to participate in markets. The ability to be a fast-ramping generator or load allows ESSs to provide different grid services. This paper discusses opportunities for ESSs to participate in multiple existing and future electricity markets. The economic value of ESSs can be further increased by pragmatically participating in markets and services considering operational and degradation aspects. The impact of ESS on grid resilience is discussed, including resilience-as-a -service. ESSs can restore the grid to its 100% resilient state during system events, and may also reduce the resilience degradation time during extreme events.
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Proceedings of the American Control Conference
Energy storage systems are flexible and controllable resources that can provide a number of services for the electric power grid. Many technologies are available, and corresponding models vary greatly in level of detail and tractability. In this work, we propose an adaptive optimal control and estimation approach for real-time dispatch of energy storage systems that neither requires accurate state-of-energy measurements nor knowledge of an accurate state-of-energy model. Specifically, we formulate an online optimization problem that simultaneously solves moving horizon estimation and model predictive control problems, which results in estimates of the state-of-energy, estimates of the charging and discharging efficiencies, and future dispatch signals. We present a numerical example in which the plant is a nonlinear, time-varying Lithium-ion battery model and show that our approach effectively estimates the state-of-energy and dispatches the system without accurate knowledge of the dynamics and in the presence of significant measurement noise.
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IEEE Power and Energy Society General Meeting
Energy storage systems are flexible resources that accommodate and mitigate variability and uncertainty in the load and generation of modern power systems. We present a stochastic optimization approach for sizing and scheduling an energy storage system (ESS) for behind-the-meter use. Specifi-cally, we investigate the use of an ESS with a solar photovoltaic (PV) system and a generator in islanded operation tasked with balancing a critical load. The load and PV generation are uncertain and variable, so forecasts of these variables are used to determine the required energy capacity of the ESS as well as the schedule for operating the ESS and the generator. When the forecasting uncertainties can be fit to normal distributions, the probabilistic load balancing constraint can be reformulated as a linear inequality constraint, and the resulting optimization problem can be solved as a linear program. Finally, we present results from a case study considering the balancing of the critical load of a water treatment plant in islanded operation.
IEEE Power and Energy Society General Meeting
Energy storage is a unique grid asset in that it is capable of providing a number of grid services. In market areas, these grid services are only as valuable as the market prices for the services provided. This paper formulates the optimization problem for maximizing energy storage revenue from arbitrage and frequency regulation in the CAISO market. The optimization algorithm was then applied to three years of historical market data (2014-2016) at 2200 nodes to quantify the locational and time-varying nature of potential revenue. The optimization assumed perfect foresight, so it provides an upper bound on the maximum expected revenue. Since California is starting to experience negative locational marginal prices (LMPs) because of increased renewable generation, the optimization includes a duty cycle constraint to handle negative LMPs. The results show that participating in frequency regulation provides approximately 3.4 times the revenue of arbitrage. In addition, arbitrage potential revenue is highly location-specific. Since there are only a handful of zones for frequency regulation, the distribution of potential revenue from frequency regulation is much tighter.
IEEE Power and Energy Society General Meeting
In this work, we provide an economic analysis of using behind-the-meter (BTM) energy storage systems (ESS) for time-of-use (TOU) bill management together with power factor correction. A nonlinear optimization problem is formulated to find the optimal ESS's charge/discharge operating scheme that minimizes the energy and demand charges while correcting the power factor of the utility customers. The energy storage's state of charge (SOC) and inverter's power factor (PF) are considered in the constraints of the optimization. The problem is then transformed to a Linear Programming (LP) problem and formulated using Pyomo optimization modeling language. Case studies are conducted for a waste water treatment plant (WWTP) in New Mexico.
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IEEE Power & Energy Society General Meeting (Online)
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SPEEDAM 2018 - Proceedings: International Symposium on Power Electronics, Electrical Drives, Automation and Motion
Energy storage is a unique grid asset in that it is capable of providing a number of grid services. In market areas, these grid services are only as valuable as the market prices for the services provided. This paper formulates the optimization problem for maximizing energy storage revenue from arbitrage (day-ahead and real-time markets) in the California Independent System Operator (CAISO) market. The optimization algorithm was then applied to three years of historical market data (2014-2016) at 2200 nodes to quantify the locational and time-varying nature of potential revenue. The optimization assumed perfect foresight, so it provides an upper bound on the maximum expected revenue. Since California is starting to experience negative locational marginal prices (LMPs) because of increased renewable generation, the optimization includes a duty cycle constraint to handle negative LMPs. Two additional trading algorithms were tested that do not require perfect foresight. The first sets a buy price threshold and a sell price threshold (e.g., limit orders) for participation in the real time market, subject to the constraints of the energy storage system. The second uses the day-ahead prices as an estimate for the real time prices and performs an optimization on a rolling time horizon. The simple threshold algorithm performed the best, but both fell well short of the potential revenue identified by the optimization with perfect foresight.
SPEEDAM 2018 - Proceedings: International Symposium on Power Electronics, Electrical Drives, Automation and Motion
Techno-economic analyses of energy storage currently use constant-efficiency energy flow models. In practice, charge/discharge efficiency of energy storage varies as a function of state-of-charge, temperature, charge/discharge power. Therefore, using the constant-efficiency energy flow models will cause suboptimal results. This work focuses on incorporating nonlinear energy flow models based on nonlinear efficiency models in the revenue maximization problem of energy storage. Dynamic programming is used to solve the optimization problem. A case studies is conducted to maximize the revenue of a Vanadium Redox Flow Battery (VRFB) system in PJM's energy and frequency regulation market.
Proceedings of the IEEE Power Engineering Society Transmission and Distribution Conference
The increased penetration of renewable resources has made frequency regulation and generation control a growing concern. This has created an opportunity for Energy Storage Resource to participate in the frequency regulation market. This paper investigates the potential of Battery Energy Storage systems to participate in the German secondary frequency regulation market. A simulation model is developed to investigate the revenue opportunity of a 48 MWh Battery System participating in the secondary frequency regulation market.
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IEEE Power & Energy Society General Meeting (Online)
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IEEE Power and Energy Society General Meeting
FERC Order 755 requires RTO/ISOs to compensate the frequency regulation resources based on the actual regulation service provided. Based on this rule, a resource is compensated by a performance-based payment including a capacity payment which accounts for its provided regulation capacity and a performance payment which reflects the quantity and accuracy of its regulation service. The RTO/ISOs have been implementing different market rules to comply with FERC Order 755. This paper focuses on the MISO's implementation and presents the calculations to maximize the potential revenue of electrical energy storage (EES) from participation in arbitrage and frequency regulation in the day-ahead market using linear programming. A case study was conducted for the Indianapolis Power & Light's 20MW/20MWh EES at Harding Street Generation Station based on MISO historical data from 2014 and 2015. The results showed the maximum revenue was primarily produced by frequency regulation.
2017 North American Power Symposium, NAPS 2017
The transformation of today's grid toward smart grid has given the energy storage systems (ESSs) the opportunity to provide more services to the electric grid as well as the end customers. On the grid's side, ESSs can generate revenue streams participating in electricity markets by providing services such as energy arbitrage, frequency regulation or spinning reserves. On the customers' side, ESSs can provide a wide range of applications from on-site back-up power, storage for off-grid renewable systems to solutions for load shifting and peak shaving for commercial/industrial businesses. In this work, we provide an economic analysis of behind-the-meter (BTM) ESSs. A nonlinear optimization problem is formulated to find the optimal operating scheme for ESSs to minimize the energy and demand charges of time-of-use (TOU) customers, or to minimize the energy charge of net-metering (NEM) customers. The problem is then transformed to Linear Programming (LP) problems and formulated using Pyomo optimization modeling language. Case studies are conducted for PG&E's residential and commercial customers in San Francisco.
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IEEE Access
Today, the stability of the electric power grid is maintained through real time balancing of generation and demand. Grid scale energy storage systems are increasingly being deployed to provide grid operators the flexibility needed to maintain this balance. Energy storage also imparts resiliency and robustness to the grid infrastructure. Over the last few years, there has been a significant increase in the deployment of large scale energy storage systems. This growth has been driven by improvements in the cost and performance of energy storage technologies and the need to accommodate distributed generation, as well as incentives and government mandates. Energy management systems (EMSs) and optimization methods are required to effectively and safely utilize energy storage as a flexible grid asset that can provide multiple grid services. The EMS needs to be able to accommodate a variety of use cases and regulatory environments. In this paper, we provide a brief history of grid-scale energy storage, an overview of EMS architectures, and a summary of the leading applications for storage. These serve as a foundation for a discussion of EMS optimization methods and design.
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