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A dynamic programming model of energy storage and transformer deployments to relieve distribution constraints

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  • Xiaomin Xi
  • Ramteen Sioshansi

Abstract

We introduce a stochastic dynamic programming (SDP) model that co-optimizes multiple uses of distributed energy storage, including energy and ancillary service sales, backup capacity, and transformer loading relief, while accounting for market and system uncertainty. We propose an approximation technique to efficiently solve the SDP. We also use a case study with high residential loads to demonstrate that a deployment consisting of both storage and transformer upgrades decreases costs and increases value relative to a transformer-only deployment. Copyright Springer-Verlag Berlin Heidelberg 2016

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  • Xiaomin Xi & Ramteen Sioshansi, 2016. "A dynamic programming model of energy storage and transformer deployments to relieve distribution constraints," Computational Management Science, Springer, vol. 13(1), pages 119-146, January.
    • Handle: RePEc:spr:comgts:v:13:y:2016:i:1:p:119-146
    DOI: 10.1007/s10287-014-0218-6
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    References listed on IDEAS

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    1. Knittel, Christopher R. & Roberts, Michael R., 2005. "An empirical examination of restructured electricity prices," Energy Economics, Elsevier, vol. 27(5), pages 791-817, September.
    2. Graves, Frank & Jenkin, Thomas & Murphy, Dean, 1999. "Opportunities for Electricity Storage in Deregulating Markets," The Electricity Journal, Elsevier, vol. 12(8), pages 46-56, October.
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    4. Ramteen Sioshansi & Paul Denholm, 2010. "The Value of Plug-In Hybrid Electric Vehicles as Grid Resources," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-24.
    5. Sioshansi, Ramteen & Denholm, Paul & Jenkin, Thomas & Weiss, Jurgen, 2009. "Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects," Energy Economics, Elsevier, vol. 31(2), pages 269-277, March.
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    Cited by:

    1. Zhao, Xinyi & Shen, Xinwei & Guo, Qinglai & Sun, Hongbin & Oren, Shmuel S., 2020. "A stochastic distribution system planning method considering regulation services and energy storage degradation," Applied Energy, Elsevier, vol. 277(C).
    2. Ghadimi, Saeed & Powell, Warren B., 2024. "Stochastic search for a parametric cost function approximation: Energy storage with rolling forecasts," European Journal of Operational Research, Elsevier, vol. 312(2), pages 641-652.
    3. Neetzow, Paul & Pechan, Anna & Eisenack, Klaus, 2018. "Electricity storage and transmission: Complements or substitutes?," Energy Economics, Elsevier, vol. 76(C), pages 367-377.
    4. Barrera-Santana, J. & Sioshansi, Ramteen, 2023. "An optimization framework for capacity planning of island electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    5. Varghese, Sushant & Sioshansi, Ramteen, 2020. "The price is right? How pricing and incentive mechanisms in California incentivize building distributed hybrid solar and energy-storage systems," Energy Policy, Elsevier, vol. 138(C).
    6. Wu, Fei & Sioshansi, Ramteen, 2017. "A two-stage stochastic optimization model for scheduling electric vehicle charging loads to relieve distribution-system constraints," Transportation Research Part B: Methodological, Elsevier, vol. 102(C), pages 55-82.

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