IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v177y2016icp260-270.html
   My bibliography  Save this article

Pool equilibria including strategic storage

Author

Listed:
  • Zou, Peng
  • Chen, Qixin
  • Xia, Qing
  • He, Guannan
  • Kang, Chongqing
  • Conejo, Antonio J.

Abstract

With a rapid increase in capacity, independently-invested energy storage systems (ESSs) might take up a significant share in the generation mix, and would be required to participate in the electricity market. Considering the arbitrage capability of ESSs, their behaviors would be remarkably different from those of conventional generators, impacting the market equilibrium. These impacts would vary with the type of ESSs and the generation mix. Therefore, this paper formulates a multi-period market equilibrium problem with equilibrium constraints (EPEC) to study the strategic behaviors of different types of ESSs and their impacts on the market outcomes, assuming that ESSs behave as price-makers. The EPEC model is established within a general framework, which considers the individual profit-maximization behaviors of different ESSs and generators, including thermal units, hydro units and renewable units. Interactions between different generators and the market operator are also represented. Finally, numerical studies based on a modified IEEE 57-node system with different wind generation curves are performed for illustration and validation.

Suggested Citation

  • Zou, Peng & Chen, Qixin & Xia, Qing & He, Guannan & Kang, Chongqing & Conejo, Antonio J., 2016. "Pool equilibria including strategic storage," Applied Energy, Elsevier, vol. 177(C), pages 260-270.
    • Handle: RePEc:eee:appene:v:177:y:2016:i:c:p:260-270
    DOI: 10.1016/j.apenergy.2016.05.105
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261916307097
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2016.05.105?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. Jian Yao & Ilan Adler & Shmuel S. Oren, 2008. "Modeling and Computing Two-Settlement Oligopolistic Equilibrium in a Congested Electricity Network," Operations Research, INFORMS, vol. 56(1), pages 34-47, February.
    2. Holger Scheel & Stefan Scholtes, 2000. "Mathematical Programs with Complementarity Constraints: Stationarity, Optimality, and Sensitivity," Mathematics of Operations Research, INFORMS, vol. 25(1), pages 1-22, February.
    3. RUIZ, Carlos & CONEJO, Antonio J. & SMEERS, Yves, 2012. "Equilibria in an oligopolistic electricity pool with stepwise offer curves," LIDAM Reprints CORE 2395, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Varkani, Ali Karimi & Daraeepour, Ali & Monsef, Hassan, 2011. "A new self-scheduling strategy for integrated operation of wind and pumped-storage power plants in power markets," Applied Energy, Elsevier, vol. 88(12), pages 5002-5012.
    5. 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.
    6. Nataf, Kalen & Bradley, Thomas H., 2016. "An economic comparison of battery energy storage to conventional energy efficiency technologies in Colorado manufacturing facilities," Applied Energy, Elsevier, vol. 164(C), pages 133-139.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pfeifer, Antun & Feijoo, Felipe & Duić, Neven, 2023. "Fast energy transition as a best strategy for all? The nash equilibrium of long-term energy planning strategies in coupled power markets," Energy, Elsevier, vol. 284(C).
    2. Huang, Qisheng & Xu, Yunjian & Courcoubetis, Costas, 2020. "Stackelberg competition between merchant and regulated storage investment in wholesale electricity markets," Applied Energy, Elsevier, vol. 264(C).
    3. De Vivero-Serrano, Gustavo & Bruninx, Kenneth & Delarue, Erik, 2019. "Implications of bid structures on the offering strategies of merchant energy storage systems," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    4. Shahmohammadi, Ali & Sioshansi, Ramteen & Conejo, Antonio J. & Afsharnia, Saeed, 2018. "Market equilibria and interactions between strategic generation, wind, and storage," Applied Energy, Elsevier, vol. 220(C), pages 876-892.
    5. Christos N. Dimitriadis & Evangelos G. Tsimopoulos & Michael C. Georgiadis, 2021. "A Review on the Complementarity Modelling in Competitive Electricity Markets," Energies, MDPI, vol. 14(21), pages 1-27, November.
    6. Aryani, Morteza & Ahmadian, Mohammad & Sheikh-El-Eslami, Mohammad-Kazem, 2020. "Designing a regulatory tool for coordinated investment in renewable and conventional generation capacities considering market equilibria," Applied Energy, Elsevier, vol. 279(C).
    7. Yuanrong Wang & Vignesh Raja Swaminathan & Nikita P. Granger & Carlos Ros Perez & Christian Michler, 2023. "Domain-adapted Learning and Imitation: DRL for Power Arbitrage," Papers 2301.08360, arXiv.org, revised Sep 2023.
    8. Dimitriadis, Christos N. & Tsimopoulos, Evangelos G. & Georgiadis, Michael C., 2022. "Strategic bidding of an energy storage agent in a joint energy and reserve market under stochastic generation," Energy, Elsevier, vol. 242(C).
    9. Guo, Hongye & Chen, Qixin & Xia, Qing & Kang, Chongqing, 2019. "Electricity wholesale market equilibrium analysis integrating individual risk-averse features of generation companies," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    10. Fang, Xichen & Guo, Hongye & Zhang, Xian & Wang, Xuanyuan & Chen, Qixin, 2022. "An efficient and incentive-compatible market design for energy storage participation," Applied Energy, Elsevier, vol. 311(C).
    11. Chen Zhao & Jiaqi Sun & Ping He & Shaohua Zhang & Yuqi Ji, 2023. "Integrating Risk Preferences into Game Analysis of Price-Making Retailers in Power Market," Energies, MDPI, vol. 16(8), pages 1-18, April.
    12. Calvillo, C.F. & Sánchez-Miralles, A. & Villar, J. & Martín, F., 2016. "Optimal planning and operation of aggregated distributed energy resources with market participation," Applied Energy, Elsevier, vol. 182(C), pages 340-357.
    13. Kong, Xiangyu & Xiao, Jie & Wang, Chengshan & Cui, Kai & Jin, Qiang & Kong, Deqian, 2019. "Bi-level multi-time scale scheduling method based on bidding for multi-operator virtual power plant," Applied Energy, Elsevier, vol. 249(C), pages 178-189.

    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. Andreani, R. & Júdice, J.J. & Martínez, J.M. & Martini, T., 2016. "Feasibility problems with complementarity constraints," European Journal of Operational Research, Elsevier, vol. 249(1), pages 41-54.
    2. 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.
    3. 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.
    4. Wei Wei & Yile Liang & Feng Liu & Shengwei Mei & Fang Tian, 2014. "Taxing Strategies for Carbon Emissions: A Bilevel Optimization Approach," Energies, MDPI, vol. 7(4), pages 1-18, April.
    5. Aghamohammadloo, Hossein & Talaeizadeh, Valiollah & Shahanaghi, Kamran & Aghaei, Jamshid & Shayanfar, Heidarali & Shafie-khah, Miadreza & Catalão, João P.S., 2021. "Integrated Demand Response programs and energy hubs retail energy market modelling," Energy, Elsevier, vol. 234(C).
    6. Tsimopoulos, Evangelos G. & Georgiadis, Michael C., 2021. "Nash equilibria in electricity pool markets with large-scale wind power integration," Energy, Elsevier, vol. 228(C).
    7. Kwag, Kyuhyeong & Shin, Hansol & Oh, Hyobin & Yun, Sangmin & Kim, Tae Hyun & Hwang, Pyeong-Ik & Kim, Wook, 2023. "Bilevel programming approach for the quantitative analysis of renewable portfolio standards considering the electricity market," Energy, Elsevier, vol. 263(PD).
    8. Keon Baek & Woong Ko & Jinho Kim, 2019. "Optimal Scheduling of Distributed Energy Resources in Residential Building under the Demand Response Commitment Contract," Energies, MDPI, vol. 12(14), pages 1-19, July.
    9. Zhang, Fang & Lu, Jian & Hu, Xiaojian & Meng, Qiang, 2023. "Integrated deployment of dedicated lane and roadside unit considering uncertain road capacity under the mixed-autonomy traffic environment," Transportation Research Part B: Methodological, Elsevier, vol. 174(C).
    10. Andreas Ehrenmann & Karsten Neuhoff, 2009. "A Comparison of Electricity Market Designs in Networks," Operations Research, INFORMS, vol. 57(2), pages 274-286, April.
    11. Gui-Hua Lin & Mei-Ju Luo & Jin Zhang, 2016. "Smoothing and SAA method for stochastic programming problems with non-smooth objective and constraints," Journal of Global Optimization, Springer, vol. 66(3), pages 487-510, November.
    12. Lei Guo & Gui-Hua Lin & Jane J. Ye, 2015. "Solving Mathematical Programs with Equilibrium Constraints," Journal of Optimization Theory and Applications, Springer, vol. 166(1), pages 234-256, July.
    13. Tao Tan & Yanyan Li & Xingsi Li, 2011. "A Smoothing Method for Zero–One Constrained Extremum Problems," Journal of Optimization Theory and Applications, Springer, vol. 150(1), pages 65-77, July.
    14. Ma, Tao & Yang, Hongxing & Lu, Lin & Peng, Jinqing, 2014. "Technical feasibility study on a standalone hybrid solar-wind system with pumped hydro storage for a remote island in Hong Kong," Renewable Energy, Elsevier, vol. 69(C), pages 7-15.
    15. S. Dempe & S. Franke, 2016. "On the solution of convex bilevel optimization problems," Computational Optimization and Applications, Springer, vol. 63(3), pages 685-703, April.
    16. Dávid Csercsik, 2016. "Competition and Cooperation in a Bidding Model of Electrical Energy Trade," Networks and Spatial Economics, Springer, vol. 16(4), pages 1043-1073, December.
    17. A. F. Izmailov & M. V. Solodov, 2002. "The Theory of 2-Regularity for Mappings with Lipschitzian Derivatives and its Applications to Optimality Conditions," Mathematics of Operations Research, INFORMS, vol. 27(3), pages 614-635, August.
    18. Su, Chengguo & Cheng, Chuntian & Wang, Peilin & Shen, Jianjian & Wu, Xinyu, 2019. "Optimization model for long-distance integrated transmission of wind farms and pumped-storage hydropower plants," Applied Energy, Elsevier, vol. 242(C), pages 285-293.
    19. Le Cadre, Hélène & Mezghani, Ilyès & Papavasiliou, Anthony, 2019. "A game-theoretic analysis of transmission-distribution system operator coordination," European Journal of Operational Research, Elsevier, vol. 274(1), pages 317-339.
    20. Rappaport, Ron D. & Miles, John, 2017. "Cloud energy storage for grid scale applications in the UK," Energy Policy, Elsevier, vol. 109(C), pages 609-622.

    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:177:y:2016:i:c:p:260-270. 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.