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Impacts of transmission tariff on price arbitrage operation of energy storage system in Alberta electricity market

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  • Adebayo, Abiola I.
  • Zamani-Dehkordi, Payam
  • Zareipour, Hamidreza
  • Knight, Andrew M.

Abstract

This paper investigates the application of existing tariff structures to understand how they impact the economic operation of energy storage system (ESS) for arbitrage. The scope of this research covers impacts on profitability, operating cost, energy-traded volume, and price volatility. Two facilities of different scales are considered: an ESS unit small enough to have no impact on price, and an ESS unit, large enough to have a quantifiable impact on pool price. The hourly impact of ESS operations on the pool price is estimated by modeling the price sensitivity quota curve from actual hourly market data.

Suggested Citation

  • Adebayo, Abiola I. & Zamani-Dehkordi, Payam & Zareipour, Hamidreza & Knight, Andrew M., 2018. "Impacts of transmission tariff on price arbitrage operation of energy storage system in Alberta electricity market," Utilities Policy, Elsevier, vol. 52(C), pages 1-12.
    • Handle: RePEc:eee:juipol:v:52:y:2018:i:c:p:1-12
    DOI: 10.1016/j.jup.2018.04.001
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    References listed on IDEAS

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    Cited by:

    1. Arcos-Vargas, Ángel & Canca, David & Núñez, Fernando, 2020. "Impact of battery technological progress on electricity arbitrage: An application to the Iberian market," Applied Energy, Elsevier, vol. 260(C).
    2. Núñez, Fernando & Canca, David & Arcos-Vargas, Ángel, 2022. "An assessment of European electricity arbitrage using storage systems," Energy, Elsevier, vol. 242(C).
    3. Fernando N'u~nez & David Canca & 'Angel Arcos-Vargas, 2020. "An assessment of European electricity arbitrage using storage systems," Papers 2010.11912, arXiv.org.
    4. Lak, Omidreza & Rastegar, Mohammad & Mohammadi, Mohammad & Shafiee, Soroush & Zareipour, Hamidreza, 2021. "Risk-constrained stochastic market operation strategies for wind power producers and energy storage systems," Energy, Elsevier, vol. 215(PB).
    5. Sirin, Selahattin Murat & Camadan, Ercument & Erten, Ibrahim Etem & Zhang, Alex Hongliang, 2023. "Market failure or politics? Understanding the motives behind regulatory actions to address surging electricity prices," Energy Policy, Elsevier, vol. 180(C).
    6. 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).

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