Bidding strategy for an energy storage facility

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

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Abstract

This paper studies operation decisions of energy storage facilities in perfectly and imperfectly competitive markets. In a perfectly competitive market, the storage facility is operated to maximize the social welfare. However, in a imperfectly competitive market, the storage facility operates to maximize its profit, while the market operator aims at maximizing the social welfare. In this case, the storage facility adapts its strategic
behavior to take advantage of market conditions. To model the imperfectly competitive market, a bi-level optimization model is implemented to present the interactions between the storage facility and the market operator. In an illustrative test system, operation of the storage facility in these two market structures is compared and discussed.
Original languageEnglish
Title of host publicationProceedings of the 19th Power Systems Computation Conference
Number of pages7
PublisherIEEE
Publication date2016
Publication statusPublished - 2016
Event19th Power Systems Computation Conference - Genoa, Italy
Duration: 20 Jun 201624 Jun 2016
http://www.pscc2016.net/

Conference

Conference19th Power Systems Computation Conference
CountryItaly
CityGenoa
Period20/06/201624/06/2016
Internet address

Keywords

  • Bidding strategy
  • Energy storage
  • Market operator
  • Mathematical Program with Equilibrium Constraints (MPEC)

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