Value of energy storage in the Nordic Power market - Benefits from price arbitrage and ancillary services

Behnam Zakeri, Sanna Syri

Tutkimustuotos: Artikkeli kirjassa/konferenssijulkaisussaConference article in proceedingsScientificvertaisarvioitu

36 Sitaatiot (Scopus)

Abstrakti

Electrical energy storage (EES) systems can offer different services in power systems, including flexibility for integration of variable renewable energy. The market value of energy storage in different power market designs should be quantified to justify business models and/or policy supports. This paper analyzes the economic potential of EES in the Nordic power market (Norway, Denmark, Sweden, and Finland) both in energy and ancillary services markets under current market conditions (2012-15). We propose a model for profit maximization of EES in different market levels, i.e., the day-ahead, intraday and regulation markets. The results introduce Finland as the most profitable area for price arbitrage in the day-ahead (Elspot) and regulation markets. According to the results, recent cross-border market couplings have diminished the price volatility in the intraday market (Elbas), yet the Danish bidding areas are the most lucrative places for flexibility solutions in this market. The actual benefits in the balancing market show higher uncertainties compared with inter-hour energy markets, but this market promises greater revenues. The aggregation of benefits from price arbitrage does not realize any storage profitable. The inclusion of ancillary services, however, suggests return on investment for low-cost, long lifetime batteries.

AlkuperäiskieliEnglanti
Otsikko2016 13th International Conference on the European Energy Market, EEM 2016
KustantajaIEEE
Sivumäärä5
Vuosikerta2016-July
ISBN (elektroninen)978-1-5090-1298-5
ISBN (painettu)978-1-5090-1299-2
DOI - pysyväislinkit
TilaJulkaistu - 25 heinäk. 2016
OKM-julkaisutyyppiA4 Artikkeli konferenssijulkaisussa
TapahtumaINTERNATIONAL CONFERENCE ON THE EUROPEAN ENERGY MARKETS - Porto, Portugali
Kesto: 6 kesäk. 20169 kesäk. 2016
Konferenssinumero: 13
http://www.eem2016.com/

Julkaisusarja

NimiInternational Conference on the European Energy Market
ISSN (painettu)2165-4077

Conference

ConferenceINTERNATIONAL CONFERENCE ON THE EUROPEAN ENERGY MARKETS
LyhennettäEEM
Maa/AluePortugali
KaupunkiPorto
Ajanjakso06/06/201609/06/2016
www-osoite

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