TY - JOUR
T1 - Co-planning of investments in transmission and merchant energy storage
AU - Dvorkin, Yury
AU - Ricardo, Fernández Blanco
AU - Wang, Yishen
AU - Xu, Bolun
AU - Kirschen, Daniel S.
AU - Pandžić, Hrvoje
AU - Watson, Jean Paul
AU - Cesar, A. Silva Monroy
N1 - Funding Information:
Manuscript received June 21, 2016; revised November 25, 2016 and February 28, 2017; accepted May 13, 2017. Date of publication May 17, 2017; date of current version December 20, 2017. This work was supported in part by the ARPA-E Green Electricity Network Integration (GENI) program under project DE-FOA-0000473, in part by the U.S. Department of Energy’s National Nuclear Security Administration under Contract DE-AC04-94AL85000, and in part by the Croatian Science Foundation and Croatian TSO (HOPS) under project Smart Integration of RENewables–SIREN (I-2583-2015). Paper no. TPWRS-00940-2016. (Corresponding author: Yury Dvorkin.) Y. Dvorkin is with the Tandon School of Engineering, Department of Electrical and Computer Engineering, New York University, Brooklyn, NY 11201 USA (e-mail: dvorkin@nyu.edu).
Funding Information:
This work was supported in part by the ARPA-E Green Electricity Network Integration (GENI) program under project DE-FOA-0000473, in part by the U.S. Department of Energy’s National Nuclear Security Administration under Contract DE-AC04-94AL85000, and in part by the Croatian Science Foundation and Croatian TSO (HOPS) under project Smart Integration of RENewables–SIREN (I-2583-2015). Paper no. TPWRS-00940-2016.
Publisher Copyright:
© 2017 IEEE.
PY - 2018/1
Y1 - 2018/1
N2 - Suitably located energy storage systems are able to collect significant revenue through spatiotemporal arbitrage in congested transmission networks. However, transmission capacity expansion can significantly reduce or eliminate this source of revenue. Investment decisions by merchant storage operators must, therefore, account for the consequences of potential investments in transmission capacity by central planners. This paper presents a tri-level model to co-optimize merchant electrochemical storage siting and sizing with centralized transmission expansion planning. The upper level takes the merchant storage owner’s perspective and aims to maximize the lifetime profits of the storage, while ensuring a given rate of return on investments. The middle level optimizes centralized decisions about transmission expansion. The lower level simulates market clearing. The proposed model is recast as a bi-level equivalent, which is solved using the column-and-constraint generation technique. A case study based on a 240-bus, 448-line testbed of the Western Electricity Coordinating Council interconnection demonstrates the usefulness of the proposed tri-level model.
AB - Suitably located energy storage systems are able to collect significant revenue through spatiotemporal arbitrage in congested transmission networks. However, transmission capacity expansion can significantly reduce or eliminate this source of revenue. Investment decisions by merchant storage operators must, therefore, account for the consequences of potential investments in transmission capacity by central planners. This paper presents a tri-level model to co-optimize merchant electrochemical storage siting and sizing with centralized transmission expansion planning. The upper level takes the merchant storage owner’s perspective and aims to maximize the lifetime profits of the storage, while ensuring a given rate of return on investments. The middle level optimizes centralized decisions about transmission expansion. The lower level simulates market clearing. The proposed model is recast as a bi-level equivalent, which is solved using the column-and-constraint generation technique. A case study based on a 240-bus, 448-line testbed of the Western Electricity Coordinating Council interconnection demonstrates the usefulness of the proposed tri-level model.
KW - Electricity market
KW - Energy storage siting
KW - Energy storage sizing
KW - Profitability of energy storage
KW - Transmission expansion planning
KW - Tri-level optimization
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U2 - 10.1109/TPWRS.2017.2705187
DO - 10.1109/TPWRS.2017.2705187
M3 - Article
AN - SCOPUS:85048707938
SN - 0885-8950
VL - 33
SP - 245
EP - 256
JO - IEEE Transactions on Power Systems
JF - IEEE Transactions on Power Systems
IS - 1
ER -