Electricity Storage and Demand-side Management: Is Their Co-existence Possible?

L. Exarchakos and M. Leach (UK)

Keywords

521138 Load Management, Modelling, Electricity Storage, Cash flow.

Abstract

Electricity market opening tends to cause actual generation costs to be reflected in prices, which become more variable and tend to follow the patterns of load peaks. Generating electricity at peak times is costly and in this occasion there might be an opportunity for electricity storage systems to contribute both technically and financially for relieving grid congestion. But while storage operation is based on exploiting demand and thus price peaks, Demand-Side Management (DSM), when being simultaneously in action, aims at their reduction. These two peak-load management mechanisms might therefore be in conflict, giving rise to concerns for the economic success of storage. We approach the implications for storage profits by such a co-existence, simulating the technical optimization of three main storage technologies, used for energy arbitrage services only, under DSM scenarios. It is revealed by this analysis that under the assumptions made and conditions posed, a substantial amount of DSM had only a small effect on storage profits for all technologies, as the maximization of the electricity discharged was achieved by all. The paper is based on the first stages of a larger research effort in this field, and describes the initial model formulation.

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