Change search
ReferencesLink to record
Permanent link

Direct link
Impact of storage on the efficiency and prices in real-time electricity markets
KTH, School of Electrical Engineering (EES), Automatic Control.
2013 (English)In: e-Energy 2013 - Proceedings of the 4th ACM International Conference on Future Energy Systems, Association for Computing Machinery (ACM), 2013, 15-26 p.Conference paper (Refereed)
Abstract [en]

We study the effect of energy-storage systems in dynamic real-time electricity markets. We consider that demand and renewable generation are stochastic, that real-time production is affected by ramping constraints, and that market players seek to selfishly maximize their profit. We distinguish three scenarios, depending on the owner of the storage system: (A) the supplier, (B) the consumer, or (C) a stand-alone player. In all cases, we show the existence of a competitive equilibrium when players are price-takers (they do not affect market prices). We further establish that under the equilibrium price process, players' selfish responses coincide with the social welfare-maximizing policy computed by a (hypothetical) social planner. We show that with storage the resulting price process is smoother than without. We determine empirically the storage parameters that maximize the players' revenue in the market. In the case of consumer-owned storage, or a stand-alone storage operator (scenarios B and C), we find that they do not match socially optimal parameters. We conclude that consumers and the stand-alone storage operator (but not suppliers) have an incentive to under-dimension their storage system. In addition, we determine the scaling laws of optimal storage parameters as a function of the volatility of demand and renewables. We show, in particular, that the optimal storage energy capacity scales as the volatility to the fourth power.

Place, publisher, year, edition, pages
Association for Computing Machinery (ACM), 2013. 15-26 p.
Keyword [en]
electricity pricing, energy economics, energy storage system, market efficiency
National Category
Engineering and Technology
URN: urn:nbn:se:kth:diva-134253DOI: 10.1145/2487166.2487169ScopusID: 2-s2.0-84878667052ISBN: 978-145032052-8OAI: diva2:665952
4th ACM International Conference on Future Energy Systems, e-Energy 2013; Berkeley, CA; United States; 21 May 2013 through 24 May 2013

QC 20131121

Available from: 2013-11-21 Created: 2013-11-20 Last updated: 2013-11-21Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full textScopus

Search in DiVA

By author/editor
Proutière, Alexandre
By organisation
Automatic Control
Engineering and Technology

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 33 hits
ReferencesLink to record
Permanent link

Direct link