ANALYSIS OF THE ROLE OF ENERGY STORAGE IN POWER MARKETS WITH - PowerPoint PPT Presentation

ANALYSIS OF THE ROLE OF ENERGY STORAGE IN POWER MARKETS WITH STRATEGIC PLAYERS 15th IAEE European Conference 2017 Vienna, 06.09.2017

Outline Motivation: Flexibility 1 - What's the effects of ownership? Methodology: A strategic behaving energy storage 2 - Complementarity Modeling Case Study: Scarce Production Capacity 3 - What are the effects of reduced flexibility? Conclusion 4 - Clear qualitative effects, hard to quantify Fremtiden er elektrisk

Motivation • Increasing penetration of renewables, electrical cars • Buzzwords as SmartGrid, MicroGrids and Aggregators • Who controls the flexibility? Fremtiden er elektrisk

Model Fremtiden er elektrisk

Complementarity Modeling Fremtiden er elektrisk

Case Study • Scares production capacity • Storage capacity 10 % of demand • Peak-hour price elasticity, 3 % • Peak-hour price varies • 40, 69 and 100 EUR/MWh Fremtiden er elektrisk

Results Fremtiden er elektrisk

Results Fremtiden er elektrisk

Discussion and Conclusion Clear evidence of market distortions due to the strategic behavior of the storage 1 - Both with and without restriction on production capacity The magnitude of the distortion is unclear 2 - Need a more realistic model and input to quantify the effects Highly relevant in MicroGrids 3 - Few market participants and potential low flexibility Conclusion 4 - Clear qualitative effects, hard to quantify Fremtiden er elektrisk

Thank you for your attention! Fremtiden er elektrisk