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A MILP model for optimising multi-service portfolios of distributed energy storage

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Title: A MILP model for optimising multi-service portfolios of distributed energy storage
Author(s): Moreno, R
Moreira, R
Strbac, G
Item Type: Journal Article
Abstract: Energy storage has the potential to provide multiple services to several sectors in electricity industry and thus support activities related to generation, network and system operation. Hence aggregating the value delivered by storage to these sectors is paramount for promoting its efficient deployment in the near future, which will provide the level of flexibility needed to deal with the envisaged high renewables share and the increase in peak demand driven by transport and heating electrification. In this context, we develop a Mixed Integer Linear Programming (MILP) model to schedule operation of distributed storage by coordinating provision of a range of system services which are rewarded at different market prices. The model maximises distributed storage’s net profit while providing distribution network congestion management, energy price arbitrage and various reserve and frequency regulation services through both active and reactive power control. We demonstrate benefits associated with the coordination of these services and its impacts on commercial strategies to determine optimal multi-service portfolios in the long term. We also demonstrate the value of reactive power control to support not only distribution network congestion management, but also efficient trading of energy and balancing services which are usually treated through active power-only control. In addition, we use the model to price the service of distribution network congestion management and propose an efficient investment policy to upgrade distribution network capacity in the presence of distributed storage. Finally, several case studies under current market conditions in Great Britain (GB) demonstrate that distributed storage revenues associated with frequency control services are significantly more profitable.
Publication Date: 11-Sep-2014
Date of Acceptance: 19-Aug-2014
URI: http://hdl.handle.net/10044/1/39706
DOI: http://dx.doi.org/10.1016/j.apenergy.2014.08.080
ISSN: 0306-2619
Publisher: Elsevier
Start Page: 554
End Page: 566
Journal / Book Title: Applied Energy
Volume: 137
Copyright Statement: © 2014 Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Sponsor/Funder: Engineering & Physical Science Research Council (EPSRC)
Funder's Grant Number: EP/K002252/1
Keywords: Science & Technology
Technology
Energy & Fuels
Engineering, Chemical
Engineering
Distributed energy storage
Multi-service co-optimisation
Commercial strategies
Energy and reserve services
Active and reactive power control
Power system economics
MARKETS
SYSTEMS
WIND
Energy
09 Engineering
14 Economics
Publication Status: Published
Appears in Collections:Faculty of Engineering
Electrical and Electronic Engineering
Centre for Environmental Policy
Faculty of Natural Sciences



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