Commercial strategy for operating energy storage in supporting integration of renewable generation

This paper assesses the value of energy storage and informs the business case for its multiple applications in the future GB electricity markets. This work quantifies the value that energy storage may deliver to its owner through optimising its commercial performance. For this purpose, a price-based optimization model for combined scheduling of energy storage and wind farms under the uncertainty of wind production is proposed and applied. In particular, we investigate the value of energy storage driven by the future GB generation mixes and corresponding energy and imbalance prices. Moreover, the added value of energy storage when jointly operated with wind farms is quantified. Sensitivity analysis is performed to understand the impact of network constraints, capability of primary frequency response provision and market design on the commercial performance of energy storage.