Electric energy storage arbitrage in electric power markets with wind uncertainty

Chao Li, Kory Hedman, Muhong Zhang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

Abstract

Electric energy storage (EES) can bring many benefits to power grids and to electric power markets. However, as private investors, they make profits mainly by price arbitrage. In this paper, the impacts of EES arbitrage in electric power energy markets are studied. The charging or discharging activities for large-scale EES may have huge impacts on real-time locational marginal prices (LMPs). An optimization model is proposed to maximize the arbitrager's profits with the consideration of the charging and discharging impacts on the LMPs. Three charging policies are discussed to handle the uncertainty that the intermittent wind penetration brings to the power grid. Finally, an IEEE 118-bus system case study is carried out to evaluate the model and the different charging policies.

Original languageEnglish (US)
Title of host publicationProceedings of the 49th Annual Hawaii International Conference on System Sciences, HICSS 2016
EditorsRalph H. Sprague, Tung X. Bui
PublisherIEEE Computer Society
Pages2546-2555
Number of pages10
ISBN (Electronic)9780769556703
DOIs
StatePublished - Mar 7 2016
Event49th Annual Hawaii International Conference on System Sciences, HICSS 2016 - Koloa, United States
Duration: Jan 5 2016Jan 8 2016

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2016-March
ISSN (Print)1530-1605

Other

Other49th Annual Hawaii International Conference on System Sciences, HICSS 2016
CountryUnited States
CityKoloa
Period1/5/161/8/16

Keywords

  • Electric energy storage
  • Energy markets
  • Locational marginal prices
  • Price arbitrage

ASJC Scopus subject areas

  • Engineering(all)

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  • Cite this

    Li, C., Hedman, K., & Zhang, M. (2016). Electric energy storage arbitrage in electric power markets with wind uncertainty. In R. H. Sprague, & T. X. Bui (Eds.), Proceedings of the 49th Annual Hawaii International Conference on System Sciences, HICSS 2016 (pp. 2546-2555). [7427501] (Proceedings of the Annual Hawaii International Conference on System Sciences; Vol. 2016-March). IEEE Computer Society. https://doi.org/10.1109/HICSS.2016.318