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.
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 language | English |
|---|---|
| Title of host publication | Proceedings of the 19th Power Systems Computation Conference |
| Number of pages | 7 |
| Publisher | IEEE |
| Publication date | 2016 |
| Publication status | Published - 2016 |
| Event | 19th Power Systems Computation Conference - Genoa, Italy Duration: 20 Jun 2016 → 24 Jun 2016 Conference number: 19 http://www.pscc2016.net/ |
Conference
| Conference | 19th Power Systems Computation Conference |
|---|---|
| Number | 19 |
| Country/Territory | Italy |
| City | Genoa |
| Period | 20/06/2016 → 24/06/2016 |
| Internet address |
Keywords
- Bidding strategy
- Energy storage
- Market operator
- Mathematical Program with Equilibrium Constraints (MPEC)