Economic Assessment of Energy Storage in Systems with High Levels of Renewable Resources

Nan Li, Kory Hedman

Research output: Contribution to journalArticle

63 Citations (Scopus)

Abstract

High penetration levels of renewable resources impose increasing uncertainty and variability on power system operations. Traditionally, power systems rely on conventional generators (CGs) to balance the uncertainty in renewable generation. However, as renewable penetration levels increase, CGs may suffer from higher operating costs while receiving lower profits. In contrast, since bulk energy storage can store and shift clean energy and have fast ramping capability, they may become more competitive under high renewable penetration levels. In this paper, a stochastic unit commitment model with energy storage will be presented to evaluate the short-term profitability of CGs and energy storage under different levels of renewable penetrations. The short-term profitability of CGs and energy storage units will be compared to identify the impact of increasing renewable penetration on the attractiveness of bulk energy storage in comparison to CGs.

Original languageEnglish (US)
Article number6874522
Pages (from-to)1103-1111
Number of pages9
JournalIEEE Transactions on Sustainable Energy
Volume6
Issue number3
DOIs
StatePublished - Jul 1 2015

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Energy storage
Economics
Profitability
Operating costs
Uncertainty

Keywords

  • Compressed air energy storage (CAES)
  • contingency analysis
  • integer programming
  • power generation dispatch
  • power system economics
  • power system reliability
  • pumped storage hydro (PSH)
  • renewable resources
  • stochastic unit commitment

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment

Cite this

Economic Assessment of Energy Storage in Systems with High Levels of Renewable Resources. / Li, Nan; Hedman, Kory.

In: IEEE Transactions on Sustainable Energy, Vol. 6, No. 3, 6874522, 01.07.2015, p. 1103-1111.

Research output: Contribution to journalArticle

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