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Energy storage and wind power: sensitivity of revenue to future market uncertainties
- Source :
- Dunbar, A, Wallace, A & Harrison, G 2016, ' Energy storage and wind power: Sensitivity of revenue to future market uncertainties ', IET Renewable Power Generation, vol. 10, no. 10, pp. 1535 – 1542 . https://doi.org/10.1049/iet-rpg.2016.0024
- Publication Year :
- 2016
- Publisher :
- Institution of Engineering and Technology (IET), 2016.
-
Abstract
- Grid connected electrical energy storage is expected to enable the integration of variable renewable generation in the future. As the electricity sector develops wholesale electricity prices will change, which will change the way in which storage technologies are operated. This paper investigates the sensitivity of storage revenue to uncertain market variables. Results indicate that higher gas prices, carbon prices and average demand would increase peak electricity prices, leading to larger daily price spreads and increased storage revenue. Increased wind generation, however, would reduce opportunities for price arbitrage and lessen storage revenue. Wind power also affects the way in which devices are operated and changes the characteristics which are rewarded by the market. With increased wind capacity, storage devices cycle less regularly as operation is driven by substantial changes in wind power output, rather than daily demand patterns. As a result, slower discharge times are more favourable and revenue is more sensitive to rates of self-discharge. Furthermore, there is less variation in wholesale electricity price and consequently conversion efficiency is more critical to performance.
- Subjects :
- Pumped-storage hydroelectricity
Wind power
Renewable Energy, Sustainability and the Environment
business.industry
020209 energy
02 engineering and technology
Environmental economics
Energy storage
Total revenue test
Stand-alone power system
0202 electrical engineering, electronic engineering, information engineering
Revenue
Electricity market
Electricity retailing
business
Subjects
Details
- ISSN :
- 17521424 and 17521416
- Volume :
- 10
- Database :
- OpenAIRE
- Journal :
- IET Renewable Power Generation
- Accession number :
- edsair.doi.dedup.....f6a2c0e4dd51265fcd33b48d71591115