Price arbitrage using variable-efficiency energy storage

Publikationstyp
Conference Paper
Date Issued
2019-09
Sprache
English
Author(s)
Flamm, Benjamin  
Eichler, Annika  
Smith, Roy S.  
Lygeros, John  
TORE-URI
http://hdl.handle.net/11420/12755
Journal
Journal of physics. Conference Series  
Volume
1343
Issue
1
Article Number
012060
Citation
Journal of Physics: Conference Series 1343 (1): 012060 (2019-11-20)
Contribution to Conference
International Conference on Climate Resilient Cities - Energy Efficiency and Renewables in the Digital Era 2019, CISBAT 2019  
Publisher DOI
10.1088/1742-6596/1343/1/012060
Scopus ID
2-s2.0-85076256156
Publisher
IOP Publ.
Necessary conditions for conducting arbitrage on electricity spot market prices are presented for large-scale, generic energy storage devices, as a function of device power, conversion efficiency, and per-period operating costs. A mixed integer linear program (MILP) is formulated that uses piecewise-affine approximations of potentially nonlinear energy conversion efficiency to maximize arbitrage over a fixed period. By initially removing storage limit constraints, the optimal solution to the MILP is shown to be a threshold policy, with device operating power a monotonic function of price level. The initial assumption of no storage limits is then revisited. The objective is found to be relatively insensitive to device storage limits, provided the storage size is within an order of magnitude of the optimal storage size for the given problem data.
DDC Class
530: Physik
More Funding Information
This work was supported by the Swiss Competence Centers for Energy Research FEEB&D project and the ETH Foundation.