Financial Storage Rights in Modern Energy Markets: Strategies and Outlooks

The paper discusses the benefits and shortcomings of two existing direct current optimal power flow (DCOPF) models in the context of financial storage rights. According to the case study results, the FSRs may not be able to provide confident incentives for storage owners to transfer their operation rights to system operators. The paper proposes possible solutions to solve this issue. The simulation results indicate the proposed schemes not only create motivations for storage owners to transfer their operations to the system operator but also reinforce the storage devices owners’ profits.