IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i3p610-d133734.html
   My bibliography  Save this article

Optimal Investment Planning of Bulk Energy Storage Systems

Author

Listed:
  • Dina Khastieva

    (Royal Institute of Technology (KTH), Teknikringen 33, 114 28 Stockholm, Sweden
    These authors contributed equally to this work.)

  • Ilias Dimoulkas

    (Royal Institute of Technology (KTH), Teknikringen 33, 114 28 Stockholm, Sweden
    These authors contributed equally to this work.)

  • Mikael Amelin

    (Royal Institute of Technology (KTH), Teknikringen 33, 114 28 Stockholm, Sweden
    These authors contributed equally to this work.)

Abstract

Many countries have the ambition to increase the share of renewable sources in electricity generation. However, continuously varying renewable sources, such as wind power or solar energy, require that the power system can manage the variability and uncertainty of the power generation. One solution to increase flexibility of the system is to use various forms of energy storage, which can provide flexibility to the system at different time ranges and smooth the effect of variability of the renewable generation. In this paper, we investigate three questions connected to investment planning of energy storage systems. First, how the existing flexibility in the system will affect the need for energy storage investments. Second, how presence of energy storage will affect renewable generation expansion and affect electricity prices. Third, who should be responsible for energy storage investments planning. This paper proposes to assess these questions through two different mathematical models. The first model is designed for centralized investment planning and the second model deals with a decentralized investment approach where a single independent profit maximizing utility is responsible for energy storage investments. The models have been applied in various case studies with different generation mixes and flexibility levels. The results show that energy storage system is beneficial for power system operation. However, additional regulation should be considered to achieve optimal investment and allocation of energy storage.

Suggested Citation

  • Dina Khastieva & Ilias Dimoulkas & Mikael Amelin, 2018. "Optimal Investment Planning of Bulk Energy Storage Systems," Sustainability, MDPI, vol. 10(3), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:3:p:610-:d:133734
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/3/610/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/3/610/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Edmunds, R.K. & Cockerill, T.T. & Foxon, T.J. & Ingham, D.B. & Pourkashanian, M., 2014. "Technical benefits of energy storage and electricity interconnections in future British power systems," Energy, Elsevier, vol. 70(C), pages 577-587.
    2. 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.
    3. Heydarian-Forushani, E. & Golshan, M.E.H. & Siano, Pierluigi, 2017. "Evaluating the benefits of coordinated emerging flexible resources in electricity markets," Applied Energy, Elsevier, vol. 199(C), pages 142-154.
    4. Hirth, Lion & Ueckerdt, Falko & Edenhofer, Ottmar, 2015. "Integration costs revisited – An economic framework for wind and solar variability," Renewable Energy, Elsevier, vol. 74(C), pages 925-939.
    5. Zakeri, Behnam & Syri, Sanna, 2015. "Electrical energy storage systems: A comparative life cycle cost analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 569-596.
    6. Go, Roderick S. & Munoz, Francisco D. & Watson, Jean-Paul, 2016. "Assessing the economic value of co-optimized grid-scale energy storage investments in supporting high renewable portfolio standards," Applied Energy, Elsevier, vol. 183(C), pages 902-913.
    7. Solomon, A.A. & Kammen, Daniel M. & Callaway, D., 2014. "The role of large-scale energy storage design and dispatch in the power grid: A study of very high grid penetration of variable renewable resources," Applied Energy, Elsevier, vol. 134(C), pages 75-89.
    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. Zhang, Mingming & Nie, Jinchen & Su, Bin & Liu, Liyun, 2024. "An option game model applicable to multi-agent cooperation investment in energy storage projects," Energy Economics, Elsevier, vol. 131(C).
    2. Qingtao Li & Jianxue Wang & Yao Zhang & Yue Fan & Guojun Bao & Xuebin Wang, 2020. "Multi-Period Generation Expansion Planning for Sustainable Power Systems to Maximize the Utilization of Renewable Energy Sources," Sustainability, MDPI, vol. 12(3), pages 1-18, February.
    3. Hameed, Zeenat & Hashemi, Seyedmostafa & Ipsen, Hans Henrik & Træholt, Chresten, 2021. "A business-oriented approach for battery energy storage placement in power systems," Applied Energy, Elsevier, vol. 298(C).

    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. 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.
    2. Das, Choton K. & Bass, Octavian & Kothapalli, Ganesh & Mahmoud, Thair S. & Habibi, Daryoush, 2018. "Optimal placement of distributed energy storage systems in distribution networks using artificial bee colony algorithm," Applied Energy, Elsevier, vol. 232(C), pages 212-228.
    3. Yang, Yuqing & Bremner, Stephen & Menictas, Chris & Kay, Merlinde, 2022. "Modelling and optimal energy management for battery energy storage systems in renewable energy systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    4. Blanco, Herib & Faaij, André, 2018. "A review at the role of storage in energy systems with a focus on Power to Gas and long-term storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1049-1086.
    5. Das, Choton K. & Bass, Octavian & Mahmoud, Thair S. & Kothapalli, Ganesh & Mousavi, Navid & Habibi, Daryoush & Masoum, Mohammad A.S., 2019. "Optimal allocation of distributed energy storage systems to improve performance and power quality of distribution networks," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    6. Adeoye, Omotola & Spataru, Catalina, 2020. "Quantifying the integration of renewable energy sources in West Africa's interconnected electricity network," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    7. 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).
    8. de Sisternes, Fernando J. & Jenkins, Jesse D. & Botterud, Audun, 2016. "The value of energy storage in decarbonizing the electricity sector," Applied Energy, Elsevier, vol. 175(C), pages 368-379.
    9. Abrell, Jan & Rausch, Sebastian & Streitberger, Clemens, 2019. "Buffering volatility: Storage investments and technology-specific renewable energy support," Energy Economics, Elsevier, vol. 84(S1).
    10. Wu, Wei & Lin, Boqiang, 2018. "Application value of energy storage in power grid: A special case of China electricity market," Energy, Elsevier, vol. 165(PB), pages 1191-1199.
    11. Stenzel, Peter & Linssen, Jochen, 2016. "Concept and potential of pumped hydro storage in federal waterways," Applied Energy, Elsevier, vol. 162(C), pages 486-493.
    12. Hemmati, Reza & Saboori, Hedayat & Saboori, Saeid, 2016. "Stochastic risk-averse coordinated scheduling of grid integrated energy storage units in transmission constrained wind-thermal systems within a conditional value-at-risk framework," Energy, Elsevier, vol. 113(C), pages 762-775.
    13. Dranka, Géremi Gilson & Ferreira, Paula & Vaz, A. Ismael F., 2021. "A review of co-optimization approaches for operational and planning problems in the energy sector," Applied Energy, Elsevier, vol. 304(C).
    14. Oree, Vishwamitra & Sayed Hassen, Sayed Z. & Fleming, Peter J., 2019. "A multi-objective framework for long-term generation expansion planning with variable renewables," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    15. Zhixian Wang & Ying Wang & Qia Ding & Chen Wang & Kaifeng Zhang, 2020. "Energy Storage Economic Analysis of Multi-Application Scenarios in an Electricity Market: A Case Study of China," Sustainability, MDPI, vol. 12(20), pages 1-17, October.
    16. Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S., 2018. "State-of-the-art generation expansion planning: A review," Applied Energy, Elsevier, vol. 230(C), pages 563-589.
    17. Locatelli, Giorgio & Invernizzi, Diletta Colette & Mancini, Mauro, 2016. "Investment and risk appraisal in energy storage systems: A real options approach," Energy, Elsevier, vol. 104(C), pages 114-131.
    18. Li, Qi & Xiao, Xukang & Pu, Yuchen & Luo, Shuyu & Liu, Hong & Chen, Weirong, 2023. "Hierarchical optimal scheduling method for regional integrated energy systems considering electricity-hydrogen shared energy," Applied Energy, Elsevier, vol. 349(C).
    19. Saboori, Hedayat & Hemmati, Reza & Ghiasi, Seyyed Mohammad Sadegh & Dehghan, Shahab, 2017. "Energy storage planning in electric power distribution networks – A state-of-the-art review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1108-1121.
    20. Emmanouil, Stergios & Nikolopoulos, Efthymios I. & François, Baptiste & Brown, Casey & Anagnostou, Emmanouil N., 2021. "Evaluating existing water supply reservoirs as small-scale pumped hydroelectric storage options – A case study in Connecticut," Energy, Elsevier, vol. 226(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:jsusta:v:10:y:2018:i:3:p:610-:d:133734. 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.