Efficient Storage Capacity in Power Systems with Thermal and Renewable Generation

Power systems with high shares of wind and solar power have to balance their intermittent nature. Pumped-hydro storage plants can provide the required flexibility, while thermal backup plants offer an alternative. This paper proposes a capacity planning model to describe the efficient technology portfolio. Drawing on a residual load duration curve, we derive the efficient storage capacity and discuss its dependence on cost parameters, as well as the effect of periods with renewable generation in excess of load. A case study for Germany applies the model and highlights the impact of CO2 prices on storage efficiency.

[1]  Peak load pricing model of an electric utility using pumped storage , 1973 .

[2]  H. Tolle,et al.  Optimization Methods , 1975 .

[3]  Hugh Gravelle.  The Peak Load Problem with Feasible Storage , 1976 .

[4]  H. Chao.  Peak Load Pricing and Capacity Planning with Demand and Supply Uncertainty , 1983 .

[5]  Robert Wilson,et al.  Priority Service: Pricing, Investment, and Market Organization , 1987 .

[6]  Paul R. Kleindorfer,et al.  Peak-load pricing and reliability under uncertainty , 1993 .

[7]  Chitru S. Fernando,et al.  The theory of peak-load pricing: A survey , 1995 .

[8]  Chitru S. Fernando,et al.  Utilities Under Competition: An Options-Based Market Approach , 1996 .

[9]  Anthony Horsley,et al.  Efficiency Rents of Pumped-Storage Plants and Their Uses for Operation and Investment Decisions , 2000 .

[10]  Christoph Weber,et al.  Uncertainty in the Electric Power Industry - Methods and Models for Decision Support , 2005, International series in operations research and management science.

[11]  D. J. Swider,et al.  Compressed Air Energy Storage in an Electricity System With Significant Wind Power Generation , 2007, IEEE Transactions on Energy Conversion.

[12]  Petter Bjerksund,et al.  Gas Storage Valuation: Price Modelling v. Optimization Methods , 2008 .

[13]  P. Denholm,et al.  Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects , 2009 .

[14]  Christoph Weber,et al.  Valuing Fuel Diversification in Optimal Investment Policies for Electricity Generation Portfolios , 2009 .

[15]  J. A. Carta,et al.  A review of wind speed probability distributions used in wind energy analysis: Case studies in the Canary Islands , 2009 .

[16]  Freyr Sverrisson,et al.  Renewables 2014 : global status report , 2014 .

[17]  R. Sioshansi.  Welfare Impacts of Electricity Storage and the Implications of Ownership Structure , 2010 .

[18]  Eamon McKeogh,et al.  Techno-economic review of existing and new pumped hydro energy storage plant , 2010 .

[19]  Michel Moreaux,et al.  Pumped storage and cost saving , 2010 .

[20]  Mark O'Malley,et al.  The viability of balancing wind generation with large scale energy storage , 2010 .

[21]  Robert B. Jackson,et al.  Opportunities and barriers to pumped-hydro energy storage in the United States , 2011 .

[22]  Aidan Tuohy,et al.  Pumped storage in systems with very high wind penetration , 2011 .

[23]  Marcus Fehling,et al.  The Software Car: Information and Communication Technology (ICT) as an Engine for the Electromobility of the Future, Summary of results of the "eCar ICT System Architecture for Electromobility" research project sponsored by the Federal Ministry of Economics and Technology , 2011 .

[24]  P. Denholm,et al.  A comparative analysis of the value of pure and hybrid electricity storage , 2011 .

[25]  Christoph Weber,et al.  Valuing fuel diversification in power generation capacity planning , 2012 .

[26]  Bjarne Steffen,et al.  Prospects for Pumped‐Hydro Storage in Germany , 2012 .

[27]  A. Wagner,et al.  Residual Demand Modeling and Application to Electricity Pricing , 2012 .