IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i12p4695-d1170639.html
   My bibliography  Save this article

Merchant Energy Storage Investment Analysis Considering Multi-Energy Integration

Author

Listed:
  • Long Wang

    (Key Laboratory of Power System Intelligent Scheduling and Control of Ministry of Education, Shandong University, Jinan 250061, China)

Abstract

In this paper, a two-stage model of an integrated energy demand response is proposed, and the quantitative relationship between the two main concerns of investors, i.e., investment return and investment cycle and demand response, is verified by the experimental data. Energy storage technology is a key means through which to deal with the instability of modern energy sources. One of the key development paths in the electricity market is the development by energy merchants of energy storage power plants in the distribution network to engage in a grid demand response. This research proposes a two-stage energy storage configuration approach for a cold-heat-power multi-energy complementary multi-microgrid system. Considering the future bulk connections of distributed power generation, the two most critical points of energy storage station construction are the power generation equipment and specific scenarios for serving the community, as well as the purchase and sale price of electricity for serving the community microgrid (which directly affects the investment revenue). Therefore, this paper focuses on analyzing the different impacts caused by these two issues; namely, the two most important concerns for the construction of energy storage configurations. First, the basic model enabling wholesale electricity traders to construct energy storage power plants is presented. Second, for a multi-microgrid system with a complementary cold-heat-power multi-energy scenario, a two-stage optimum allocation model is constructed, whereby the upper model calculates the energy storage allocation problem and the lower model calculates the optimal dispatch problem. The lower model’s dispatch computation validates the upper configuration model’s reasonableness. Finally, the two-layer model is converted to a single-layer model by the KKT condition, and the nonlinear problem is converted to a linear problem with the big-M method. The validity is proved via mathematical examples, and it is demonstrated that the planned energy storage plants by merchants may accomplish resource savings and mutual advantages for both users and wholesale power traders.

Suggested Citation

  • Long Wang, 2023. "Merchant Energy Storage Investment Analysis Considering Multi-Energy Integration," Energies, MDPI, vol. 16(12), pages 1-19, June.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:12:p:4695-:d:1170639
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/12/4695/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/12/4695/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. PraveenKumar, Seepana & Agyekum, Ephraim Bonah & Kumar, Abhinav & Velkin, Vladimir Ivanovich, 2023. "Performance evaluation with low-cost aluminum reflectors and phase change material integrated to solar PV modules using natural air convection: An experimental investigation," Energy, Elsevier, vol. 266(C).
    2. Bistline, John E.T. & Young, David T., 2020. "Emissions impacts of future battery storage deployment on regional power systems," Applied Energy, Elsevier, vol. 264(C).
    3. Ghersi, Djamal Eddine & Amoura, Meriem & Loubar, Khaled & Desideri, Umberto & Tazerout, Mohand, 2021. "Multi-objective optimization of CCHP system with hybrid chiller under new electric load following operation strategy," Energy, Elsevier, vol. 219(C).
    4. Karimi, Hamid & Jadid, Shahram, 2023. "Multi-layer energy management of smart integrated-energy microgrid systems considering generation and demand-side flexibility," Applied Energy, Elsevier, vol. 339(C).
    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. Merrick, James H. & Bistline, John E.T. & Blanford, Geoffrey J., 2024. "On representation of energy storage in electricity planning models," Energy Economics, Elsevier, vol. 136(C).
    2. Lavin, Luke & Apt, Jay, 2021. "The importance of peak pricing in realizing system benefits from distributed storage," Energy Policy, Elsevier, vol. 157(C).
    3. Liu, Jiejie & Li, Yao & Ma, Yanan & Qin, Ruomu & Meng, Xianyang & Wu, Jiangtao, 2023. "Two-layer multiple scenario optimization framework for integrated energy system based on optimal energy contribution ratio strategy," Energy, Elsevier, vol. 285(C).
    4. Shahriyar Nasirov & Paula Gonzalez & Jose Opazo & Carlos Silva, 2023. "Development of Rooftop Solar under Netbilling in Chile: Analysis of Main Barriers from Project Developers’ Perspectives," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    5. Ting Zhang & Shuaishuai Cao & Lingying Pan & Chenyu Zhou, 2020. "A Policy Effect Analysis of China’s Energy Storage Development Based on a Multi-Agent Evolutionary Game Model," Energies, MDPI, vol. 13(23), pages 1-35, November.
    6. Haiyan Meng & Yakai Lu & Zhe Tian & Xiangbei Jiang & Zhongqing Han & Jide Niu, 2023. "Performance Evaluation Method of Day-Ahead Load Prediction Models in a District Heating and Cooling System: A Case Study," Energies, MDPI, vol. 16(14), pages 1-19, July.
    7. KM Puja Bharti & Haroon Ashfaq & Rajeev Kumar & Rajveer Singh, 2024. "Designing a Bidirectional Power Flow Control Mechanism for Integrated EVs in PV-Based Grid Systems Supporting Onboard AC Charging," Sustainability, MDPI, vol. 16(20), pages 1-27, October.
    8. Ghodusinejad, Mohammad Hasan & Lavasani, Zahra & Yousefi, Hossein, 2023. "A combined decision-making framework for techno-enviro-economic assessment of a commercial CCHP system," Energy, Elsevier, vol. 276(C).
    9. Huang, Z.F. & Soh, K.Y. & Islam, M.R. & Chua, K.J., 2023. "Development of a novel grid-free district cooling system considering blockchain-based demand response management," Applied Energy, Elsevier, vol. 342(C).
    10. Yang, Yu & Liu, Zhiqiang & Xie, Nan & Wang, Jiaqiang & Cui, Yanping & Agbodjan, Yawovi Souley, 2023. "Multi-criteria optimization of multi-energy complementary systems considering reliability, economic and environmental effects," Energy, Elsevier, vol. 269(C).
    11. Ren, Xin-Yu & Li, Ling-Ling & Ji, Bing-Xiang & Liu, Jia-Qi, 2024. "Design and analysis of solar hybrid combined cooling, heating and power system: A bi-level optimization model," Energy, Elsevier, vol. 292(C).
    12. Zheng, Nan & Zhang, Hanfei & Duan, Liqiang & Wang, Qiushi & Bischi, Aldo & Desideri, Umberto, 2023. "Techno-economic analysis of a novel solar-driven PEMEC-SOFC-based multi-generation system coupled parabolic trough photovoltaic thermal collector and thermal energy storage," Applied Energy, Elsevier, vol. 331(C).
    13. Kang, Ligai & Wu, Xiaojing & Yuan, Xiaoxue & Ma, Kunru & Wang, Yongzhen & Zhao, Jun & An, Qingsong, 2021. "Influence analysis of energy policies on comprehensive performance of CCHP system in different buildings," Energy, Elsevier, vol. 233(C).
    14. MD Shouquat Hossain & Laveet Kumar & Adeel Arshad & Jeyraj Selvaraj & A. K. Pandey & Nasrudin Abd Rahim, 2023. "A Comparative Investigation on Solar PVT- and PVT-PCM-Based Collector Constancy Performance," Energies, MDPI, vol. 16(5), pages 1-26, February.
    15. Khan, Sheher Yar & Waqas, Adeel & Kumar, Mahesh & Liu, Shuli & Shen, Yongliang & Chen, Tingsen & Shoaib, Muhammad & Khan, Muhammad Omair, 2024. "Experimental, numerical, and 4E assessment of photovoltaic module using macro-encapsulation of pure and nano phase change material: A comparative analysis," Energy, Elsevier, vol. 290(C).
    16. Zhou, Shengdong & Bai, Zhang & Li, Qi & Yuan, Yu & Wang, Shuoshuo, 2024. "Potential of applying the thermochemical recuperation in combined cooling, heating and power generation: Optimized recuperation regulation with syngas storage," Applied Energy, Elsevier, vol. 353(PB).
    17. Long Wang, 2023. "Optimal Scheduling Strategy for Multi-Energy Microgrid Considering Integrated Demand Response," Energies, MDPI, vol. 16(12), pages 1-17, June.
    18. Yuwei, Liu & Li, Lingling & Jiaqi, Liu, 2024. "Hybrid scheduling strategy and improved marine predator optimizer for energy scheduling in integrated energy system to enhance economic and environmental protection capability," Renewable Energy, Elsevier, vol. 228(C).
    19. Wang, Zhaojun & Zhang, Zhonghui & Zhang, Zhonglian & Lei, Dayong & Li, Moxuan & Zhang, Liuyu, 2023. "Two-layer optimization of integrated energy system with considering ambient temperature effect and variable operation scheme," Energy, Elsevier, vol. 278(C).
    20. Liu, Zhijian & Li, Ying & Fan, Guangyao & Wu, Di & Guo, Jiacheng & Jin, Guangya & Zhang, Shicong & Yang, Xinyan, 2022. "Co-optimization of a novel distributed energy system integrated with hybrid energy storage in different nearly zero energy community scenarios," Energy, Elsevier, vol. 247(C).

    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:gam:jeners:v:16:y:2023:i:12:p:4695-:d:1170639. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.