Analysis and Modeling of Electricity Market for Energy Storage Systems

This paper presents a detailed technical and economic analysis of existing opportunities for energy storage in electricity market with the focus on California Independent System Operator (CAISO) market. Battery Energy Storage Systems (BESS) can be deployed in power grid to improve power quality, stability, and reliability of the system. However, due to the high initial cost of BESS, the optimal operation of this asset is essential. A few electricity markets in the world currently have a viable platform for BESS participation in different markets. However, the significant details and complexity of regulations in these markets as well as lack of technical and mathematical interpretation of the regulations become an obstacle for researchers to come up with optimum solution for control and planning of BESS in electricity market. In this paper, the requirements and the participating process of energy storage in Ancillary Services including spinning reserve and regulation, as well as energy market for both Day Ahead (DA) and Real Time (RT) markets are studied. The outcome of this paper is the compilation of the CAISO electricity market regulations and the mathematical model for each service as well as constraints that are applicable to BESS deployment.