Optimization of a Pumped Thermal Energy Storage System Operating for Revenue Maximization

A Pumped Thermal Energy Storage (PTES) system is one of many possible energy storage solutions that could help integrate variable renewable energy generators into the power grid. This paper analyzes the possible use of a PTES system to generate revenue in power systems through energy arbitrage, regulation service, and a combination of the two revenue generating techniques. Modeling a PTES system as a battery, linear optimization is used to optimize the PTES system operation and find which revenue technique will generate the most profit. Furthermore, the factors of power output and energy storage capacity are analyzed to demonstrate the effects they have on the maximum revenue generation capability of the PTES system. Extensive studies have shown that it is feasible to use PTES for revenue generation, and the maximum revenue could be achieved by using PTES to provide both arbitrage and regulation services.