Inventory control of storage in distribution systems

Distribution-side energy storage is a natural mechanism for absorbing variability from renewable sources, and hence minimizing costly reliance on generator reserves. We consider a simple contract between a producer with uncertain output and storage. The optimal storage scheduling strategy is shown to be an inventory control-like policy, which we use to characterize the Nash equilibria arising between generation and storage.

[1]  J. Goodman.  Note on Existence and Uniqueness of Equilibrium Points for Concave N-Person Games , 1965 .

[2]  Roy Billinton,et al.  Reliability evaluation of power systems , 1984 .

[3]  Drew Fudenberg,et al.  Game theory (3. pr.) , 1991 .

[4]  Dimitri P. Bertsekas,et al.  Dynamic Programming and Optimal Control, Two Volume Set , 1995 .

[5]  Dimitri P. Bertsekas,et al.  Dynamic Programming and Optimal Control, Two Volume Set , 1995 .

[6]  Maqbool Dada,et al.  Pricing and the Newsvendor Problem: A Review with Extensions , 1999, Oper. Res..

[7]  E. Allen,et al.  Reserve markets for power systems reliability , 2000 .

[8]  Lennart Söder,et al.  Distributed generation : a definition , 2001 .

[9]  F. Wolak,et al.  Estimating the Customer-Level Demand for Electricity Under Real-Time Market Prices , 2001 .

[10]  E. Litvinov,et al.  Energy and Reserve Market Designs with Explicit Consideration to Lost Opportunity Costs , 2002, IEEE Power Engineering Review.

[11]  Magnus Korpaas,et al.  Operation and sizing of energy storage for wind power plants in a market system , 2003 .

[12]  J.P. Barton,et al.  Energy storage and its use with intermittent renewable energy , 2004, IEEE Transactions on Energy Conversion.

[13]  Mukund R. Patel.  Wind and Solar Power Systems: Design, Analysis, and Operation, Second Edition , 2005 .

[14]  Mukund Patel,et al.  Book Review: Wind and Solar Power Systems—Design, Analysis, and Operation , 2006 .

[15]  Mike Chen,et al.  Reliability by design in distributed power transmission networks , 2006, Autom..

[16]  Warren B. Powell,et al.  Optimal Energy Commitments with Storage and Intermittent Supply , 2011, Oper. Res..

[17]  P. Varaiya,et al.  Bringing Wind Energy to Market , 2012, IEEE Transactions on Power Systems.