Multi-market Optimal Energy Storage Arbitrage with Capacity Blocking for Emergency Services
The future power system is increasingly interconnected via both AC and DC interconnectors. These interconnectors establish links between previously decoupled energy markets. In this paper, we propose an optimal multi-market energy storage arbitrage model that includes emergency service provisions fo...
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Main Authors | , , , |
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Format | Journal Article |
Language | English |
Published |
01.10.2023
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Subjects | |
Online Access | Get full text |
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Summary: | The future power system is increasingly interconnected via both AC and DC
interconnectors. These interconnectors establish links between previously
decoupled energy markets. In this paper, we propose an optimal multi-market
energy storage arbitrage model that includes emergency service provisions for
system operator(s). The model considers battery ramping and capacity
constraints and utilizes operating envelopes calculated based on interconnector
capacity, efficiency, dynamic energy injection and offshore wind generation in
the day-ahead market. The arbitrage model considers two separate electricity
prices for buying and selling of electricity in the two regions, connected via
an interconnector. Using disjunctive linearization of nonlinear terms, we
exactly reformulate the inter-regional energy arbitrage optimization as a mixed
integer linear programming problem. We propose two capacity limit selection
models for storage owners providing emergency services. The numerical analyses
focus on two interconnections linking Belgium and the UK. The results are
assessed based on revenue, operational cycles, payback period, shelf life and
computation times. |
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DOI: | 10.48550/arxiv.2310.00775 |