IDEAS home Printed from https://ideas.repec.org/a/aen/journl/ej44-3-sioshansi.html
   My bibliography  Save this article

What Duality Theory Tells Us About Giving Market Operators the Authority to Dispatch Energy Storage

Author

Listed:
  • Yuzhou Jiang and Ramteen Sioshansi

Abstract

There is a debate about which entity should have the authority to dispatch energy storage that participates in restructured wholesale electricity markets. Some stakeholders raise concerns that market operators' independence can be threatened if they make operational decisions for energy storage. The rationale that underlies this concern is that operating energy storage can affect the balance of the system and price formation. We demonstrate that having market operators make operational decisions for energy storage does not change the fundamental nature of the optimal-power-flow problem. Using duality theory, we show that if market operators co-optimize the operation of energy storage with that of generators and transmission, the optimal-power-flow problem yields short-run dispatch support and incentive compatibility and long-run efficiency. These findings are analogous to those for having market operators co-optimize transmission use with generator dispatch. Our work suggests that concerns around giving market operators the authority to dispatch energy storage are misplaced.

Suggested Citation

  • Yuzhou Jiang and Ramteen Sioshansi, 2023. "What Duality Theory Tells Us About Giving Market Operators the Authority to Dispatch Energy Storage," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
  • Handle: RePEc:aen:journl:ej44-3-sioshansi
    as

    Download full text from publisher

    File URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=4003
    Download Restriction: Access to full text is restricted to IAEE members and subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • F0 - International Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aen:journl:ej44-3-sioshansi. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: David Williams (email available below). General contact details of provider: https://edirc.repec.org/data/iaeeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.