1672. Optimizing Revenue Potential of Mid-Term Storage Technologies in Sequential Electricity Markets
Invited abstract in session MB-44: Inverse Design Modelling of Energy Systems, stream Energy Economics & Management.
Monday, 10:30-12:00Room: Newlyn 1.01
Authors (first author is the speaker)
| 1. | Jonathan Stelzer
|
Abstract
Due to increasing share of volatile renewable energies, storage systems are essential for bridging longer periods with limited wind and solar energy. These phases, lasting several days or weeks, cannot be addressed by short-term storage. Mid-term storage systems, with discharge times ranging from several hours to weeks, open up new revenue potentials. Unlike lithium-ion batteries, they provide cost-effective scalability for longer durations and larger capacities. Their economic viability can be enhanced by leveraging opportunities across sequential electricity markets. This study investigates the revenue potential of mid-term electricity storage systems by optimizing the storage dispatch over three sequential electricity markets. Using time series data from Germany’s balancing energy market for automatic frequency restoration reserve, the day-ahead market and intraday market, a multi-stage optimization problem is formulated to determine the optimal market-driven operation strategy. By considering various efficiencies and discharge durations, the method enables the inverse determination of optimal technical configuration of mid-term storage technologies. The expected results assess whether expanding participation across the three sequential markets, rather than relying solely on the day-ahead market, can lead to increased revenues. Furthermore, it offers clarity on whether longer discharge times contribute to higher revenues and how efficiency impacts overall revenue.
Keywords
- OR in Energy
- Electricity Markets
- Optimization Modeling
Status: accepted
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