Abstract:
As energy storage systems (ESSs) become economically competitive, it is natural to expect significant increases in deployments in the near future. Consequently, these sys...Show MoreNotes: As originally submitted and published there was an error in this document. The authors subsequently provided the following text: "Correct author name is Jesus E. Contereras-Ocaña - ORCID ID: 0000-0002-0892-0966." The original article PDF remains unchanged.
Metadata
Abstract:
As energy storage systems (ESSs) become economically competitive, it is natural to expect significant increases in deployments in the near future. Consequently, these systems will form a nontrivial part of the energy market and may exhibit strategic actions as ESS owners strive to maximize their profits. In this work we study the impact of strategic bidding of ESSs on the rest of the power system players and propose a non-uniform pricing scheme designed to mitigate adverse impacts. We show that while strategic bids increase the ESS's profits, it has negative impacts on the social welfare and mixed impacts on other players. We also show that the proposed pricing scheme incentivizes the ESSs to behave in a socially optimal manner and allows for profit regulation and welfare distribution among the players.
Notes: As originally submitted and published there was an error in this document. The authors subsequently provided the following text: "Correct author name is Jesus E. Contereras-Ocaña - ORCID ID: 0000-0002-0892-0966." The original article PDF remains unchanged.
Published in: 2017 IEEE Power & Energy Society General Meeting
Date of Conference: 16-20 July 2017
Date Added to IEEE Xplore: 01 February 2018
ISBN Information:
Electronic ISSN: 1944-9933