IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v139y2015icp104-118.html
   My bibliography  Save this article

Assessing the benefits and economics of bulk energy storage technologies in the power grid

Author

Listed:
  • Das, Trishna
  • Krishnan, Venkat
  • McCalley, James D.

Abstract

This paper presents a generic bulk energy storage dispatch model for production costing simulation, and assesses the performance and economics of storage under various system scenarios. The storage model presented captures the dynamic relationship between the reservoir energy status and the storage commitments in energy and ancillary co-optimization market, thereby enabling the dispatch of storage for both energy and cross-market arbitrage opportunities. The paper also presents a methodology to quantify the cycling costs incurred by conventional generating units due to frequent start–shut cycles and ancillary services. The bulk storage technology modeled is compressed air energy storage (CAES), and it is represented within the IEEE 24 bus reliability test system. Simulations are performed to quantify the impacts of bulk energy storage in terms of reduction in market prices, system production and cycling costs, and also to investigate the economic viability of storage projects in terms of payback periods under increasing wind penetration levels.

Suggested Citation

  • Das, Trishna & Krishnan, Venkat & McCalley, James D., 2015. "Assessing the benefits and economics of bulk energy storage technologies in the power grid," Applied Energy, Elsevier, vol. 139(C), pages 104-118.
    • Handle: RePEc:eee:appene:v:139:y:2015:i:c:p:104-118
    DOI: 10.1016/j.apenergy.2014.11.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261914011660
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2014.11.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Deb, Rajat, 2000. "Operating Hydroelectric Plants and Pumped Storage Units in a Competitive Environment," The Electricity Journal, Elsevier, vol. 13(3), pages 24-32, April.
    2. Drury, Easan & Denholm, Paul & Sioshansi, Ramteen, 2011. "The value of compressed air energy storage in energy and reserve markets," Energy, Elsevier, vol. 36(8), pages 4959-4973.
    3. Bradbury, Kyle & Pratson, Lincoln & Patiño-Echeverri, Dalia, 2014. "Economic viability of energy storage systems based on price arbitrage potential in real-time U.S. electricity markets," Applied Energy, Elsevier, vol. 114(C), pages 512-519.
    4. Hartmann, Niklas & Vöhringer, O. & Kruck, C. & Eltrop, L., 2012. "Simulation and analysis of different adiabatic Compressed Air Energy Storage plant configurations," Applied Energy, Elsevier, vol. 93(C), pages 541-548.
    5. Zafirakis, Dimitrios & Chalvatzis, Konstantinos J. & Baiocchi, Giovanni & Daskalakis, George, 2013. "Modeling of financial incentives for investments in energy storage systems that promote the large-scale integration of wind energy," Applied Energy, Elsevier, vol. 105(C), pages 138-154.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jannelli, E. & Minutillo, M. & Lubrano Lavadera, A. & Falcucci, G., 2014. "A small-scale CAES (compressed air energy storage) system for stand-alone renewable energy power plant for a radio base station: A sizing-design methodology," Energy, Elsevier, vol. 78(C), pages 313-322.
    2. Krishnan, Venkat & Das, Trishna, 2015. "Optimal allocation of energy storage in a co-optimized electricity market: Benefits assessment and deriving indicators for economic storage ventures," Energy, Elsevier, vol. 81(C), pages 175-188.
    3. Chazarra, Manuel & Pérez-Díaz, Juan I. & García-González, Javier & Praus, Roland, 2018. "Economic viability of pumped-storage power plants participating in the secondary regulation service," Applied Energy, Elsevier, vol. 216(C), pages 224-233.
    4. McConnell, Dylan & Forcey, Tim & Sandiford, Mike, 2015. "Estimating the value of electricity storage in an energy-only wholesale market," Applied Energy, Elsevier, vol. 159(C), pages 422-432.
    5. Pejman Bahramian, 2021. "Integration of wind power into an electricity system using pumped-storage: Economic challenges and stakeholder impacts," Working Paper 1480, Economics Department, Queen's University.
    6. Boffino, Luigi & Conejo, Antonio J. & Sioshansi, Ramteen & Oggioni, Giorgia, 2019. "A two-stage stochastic optimization planning framework to decarbonize deeply electric power systems," Energy Economics, Elsevier, vol. 84(C).
    7. Ding, Jie & Xu, Yujie & Chen, Haisheng & Sun, Wenwen & Hu, Shan & Sun, Shuang, 2019. "Value and economic estimation model for grid-scale energy storage in monopoly power markets," Applied Energy, Elsevier, vol. 240(C), pages 986-1002.
    8. Sheng, L. & Zhou, Z. & Charpentier, J.F. & Benbouzid, M.E.H., 2017. "Stand-alone island daily power management using a tidal turbine farm and an ocean compressed air energy storage system," Renewable Energy, Elsevier, vol. 103(C), pages 286-294.
    9. Foley, A. & Díaz Lobera, I., 2013. "Impacts of compressed air energy storage plant on an electricity market with a large renewable energy portfolio," Energy, Elsevier, vol. 57(C), pages 85-94.
    10. Bi, Xianyun & Liu, Pei & Li, Zheng, 2016. "Thermo-dynamic analysis and simulation of a combined air and hydro energy storage (CAHES) system," Energy, Elsevier, vol. 116(P2), pages 1385-1396.
    11. He, Wei & Dooner, Mark & King, Marcus & Li, Dacheng & Guo, Songshan & Wang, Jihong, 2021. "Techno-economic analysis of bulk-scale compressed air energy storage in power system decarbonisation," Applied Energy, Elsevier, vol. 282(PA).
    12. Yucekaya, Ahmet, 2013. "The operational economics of compressed air energy storage systems under uncertainty," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 298-305.
    13. Shcherbakova, Anastasia & Kleit, Andrew & Cho, Joohyun, 2014. "The value of energy storage in South Korea’s electricity market: A Hotelling approach," Applied Energy, Elsevier, vol. 125(C), pages 93-102.
    14. Mercier, Thomas & Olivier, Mathieu & De Jaeger, Emmanuel, 2023. "The value of electricity storage arbitrage on day-ahead markets across Europe," Energy Economics, Elsevier, vol. 123(C).
    15. Zafirakis, Dimitrios & Chalvatzis, Konstantinos J. & Baiocchi, Giovanni & Daskalakis, Georgios, 2016. "The value of arbitrage for energy storage: Evidence from European electricity markets," Applied Energy, Elsevier, vol. 184(C), pages 971-986.
    16. Hossein Safaei & Michael J. Aziz, 2017. "Thermodynamic Analysis of Three Compressed Air Energy Storage Systems: Conventional, Adiabatic, and Hydrogen-Fueled," Energies, MDPI, vol. 10(7), pages 1-31, July.
    17. Venkataramani, Gayathri & Parankusam, Prasanna & Ramalingam, Velraj & Wang, Jihong, 2016. "A review on compressed air energy storage – A pathway for smart grid and polygeneration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 895-907.
    18. Jeon, Wooyoung & Mo, Jung Youn, 2018. "The true economic value of supply-side energy storage in the smart grid environment – The case of Korea," Energy Policy, Elsevier, vol. 121(C), pages 101-111.
    19. Chen, Yang & Hu, Mengqi & Zhou, Zhi, 2017. "A data-driven analytical approach to enable optimal emerging technologies integration in the co-optimized electricity and ancillary service markets," Energy, Elsevier, vol. 122(C), pages 613-626.
    20. Mauricio B. C. Salles & Junling Huang & Michael J. Aziz & William W. Hogan, 2017. "Potential Arbitrage Revenue of Energy Storage Systems in PJM," Energies, MDPI, vol. 10(8), pages 1-19, July.

    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:eee:appene:v:139:y:2015:i:c:p:104-118. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    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.