A Bilevel Model for Participation of a Storage System in Energy and Reserve Markets

Ehsan Nasrolahpour, Jalal Kazempour, Hamidreza Zareipour*, William D. Rosehart

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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Abstract

We develop a decision-making tool based on a bilevel complementarity model for a merchant price-maker energy storage system to determine the most beneficial trading actions in pool-based markets, including day-ahead (as joint energy and reserve markets) and balancing settlements. The uncertainty of net load deviation in real-time is incorporated into the model using a set of scenarios generated from the available forecast in the day-ahead. The objective of this energy storage system is to maximize its expected profit. The day-ahead products of energy storage system include energy as well as reserve commitment (as one of the ancillary services), whereas its balancing product is the energy deployed from the committed reserve. The proposed model captures the interactions of different markets and their impacts on the functioning of the storage system. It also provides an insight for storage system into clearing process of multiple markets and enables such a facility to possibly affect the outcomes of those markets to its own benefit through strategic price and quantity offers. The validity of the proposed approach is evaluated using a numerical study.
Original languageEnglish
JournalI E E E Transactions on Sustainable Energy
Volume9
Issue number2
Pages (from-to)582 - 598
ISSN1949-3029
DOIs
Publication statusPublished - 2018

Bibliographical note

(c) 2017 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.

Keywords

  • Energy storage system
  • Energy
  • Reserve
  • Balancing market
  • Strategic bidding

Cite this

Nasrolahpour, Ehsan ; Kazempour, Jalal ; Zareipour, Hamidreza ; Rosehart, William D. / A Bilevel Model for Participation of a Storage System in Energy and Reserve Markets. In: I E E E Transactions on Sustainable Energy. 2018 ; Vol. 9, No. 2. pp. 582 - 598.
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A Bilevel Model for Participation of a Storage System in Energy and Reserve Markets. / Nasrolahpour, Ehsan; Kazempour, Jalal; Zareipour, Hamidreza; Rosehart, William D.

In: I E E E Transactions on Sustainable Energy, Vol. 9, No. 2, 2018, p. 582 - 598.

Research output: Contribution to journalJournal articleResearchpeer-review

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AU - Kazempour, Jalal

AU - Zareipour, Hamidreza

AU - Rosehart, William D.

N1 - (c) 2017 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.

PY - 2018

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