Assessing the impacts of energy storage on the electricity market-clearing algorithms

Abstract

This work presents a generic optimization framework based on linear Mixed Integer Programming to assess energy storage options' influence on the operational scheduling and the economic performance of a given power system with high penetration of intermittent renewable energy sources. In particular, three power markets-clearing algorithms with different order types and modeling of technical characteristics have been developed, including energy storage devices and cross-border trading capabilities as additional flexibility sources. A representative case study of the future Greek power system in 2030 with an hourly time span has been utilized to assess the developed framework's applicability. Several case studies have been studied to quantify the impacts of the market-clearing procedure and the electricity storage capacity. The results highlight the improvements in the power system due to the utilization of energy storage in terms of the system's operational cost, operational scheduling through the provision of ramping capabilities, environmental impact, and increased renewables' utilization. Energy storage has to be considered in an integrated way along with other flexibility providers (electric vehicles, interconnections, demand response, and flexible generation) to achieve synergies and fully exploit its contributions. © 2021 John Wiley & Sons Ltd.