Financial Incentives for Joint Storage Planning and Operation in Energy and Regulation Markets

• Published in: IEEE transactions on power systems Vol. 34; no. 5; pp. 3326 - 3339
• Main Authors: Huang, Qisheng, Xu, Yunjian, Courcoubetis, Costas
• Format: Journal Article
• Language: English
• Published: New York IEEE 01.09.2019; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Batteries; Deregulation; economic dispatch; Electricity supply industry; Energy storage; financial incentive; Generators; Incentives; Investment; Markets; Maximization; Network storage; Optimization; Partial discharges; Planning; Policies; power networks; Storage area networks; Storage batteries; Storage capacity; wholesale electricity markets

We analyze two market mechanisms for energy storage investment and operation: first, socially optimal storage investment with centralized operation, second, profit-maximizing storage investment with deregulated operation. For mechanism i), under which a social planner centrally optimizes storage inv...