Impact of Energy Storage on Market-Based Generation Investment Planning

Oderinwale, T. , Ye, Y., Papadaskalopoulos, D. and Strbac, G. (2019) Impact of Energy Storage on Market-Based Generation Investment Planning. In: 2019 IEEE Milan PowerTech, Milan, Italy, 23-27 Jun 2019, ISBN 9781538647226 (doi: 10.1109/PTC.2019.8810584)

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Abstract

Previous work has analyzed the role of energy storage (ES) on generation investment planning through centralised cost-minimization models which are inherited from the era of regulated electricity utilities. This paper investigates this issue in the context of the deregulated market environment by proposing a new strategic generation investment planning model. The decision making of a strategic generation company is modeled through a multi-period bi-level optimization problem, where the upper level determines the profit-maximizing investment decisions of the generation company and the lower level represents the market clearing process, accounting for the time-coupling operational characteristics of ES. This bi-level problem is solved after converting it to a single-level mixed-integer linear problem (MILP). Case studies demonstrate that the introduction of ES reduces the total generation capacity investment and enhances investments in “must-run” base-load generation over flexible peaking generation, yielding significant system cost savings.

Item Type:Conference Proceedings
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Oderinwale, Dr Temitayo
Authors: Oderinwale, T., Ye, Y., Papadaskalopoulos, D., and Strbac, G.
College/School:College of Science and Engineering > School of Engineering > Systems Power and Energy
ISBN:9781538647226
Published Online:26 August 2019

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