Optimal scheduling of large-scale price-maker energy storage

This paper describes optimal scheduling of large-scale price-maker energy storage and revenue maximization for storage owners. With the penetration of storage eminent, the sizing and scheduling of the storage system must be studied to fully benefit from this enabling technology. Energy storage systems are attractive for providing various services to the electrical grid. Energy arbitrage, being one of them, enables electricity demand to be temporally decoupled from generation. While small-scale storage systems should be considered as price-taker, large-scale aggregated storage can affect the price by increasing and decreasing the required power on the generation side. Purchasing and selling power at the spot price can create a revenue based on the power transferred and the difference in price between two periods. The paper derives a dispatch schedule based on the current load and the forecasted average demand to maximize the storage owner's revenue and discusses the effect of size on price making mechanisms.