DocumentCode :
645766
Title :
Optimal operation of energy storage for arbitrage and ancillary service capacity: The infinite horizon approach
Author :
Donadee, Jonathan
Author_Institution :
Dept. of Electr. & Comput. Eng., Carnegie Mellon Univ., Pittsburgh, PA, USA
fYear :
2013
fDate :
22-24 Sept. 2013
Firstpage :
1
Lastpage :
6
Abstract :
This paper considers the co-optimization of the operations of a grid scale energy storage resource (ESR) for both energy price arbitrage and sales of secondary frequency regulation capacity. We investigate the application of the infinite horizon Markov decision problem (MDP) framework to this problem. We formulate the ESR´s decision optimization problem as an infinite horizon, average reward MDP. This problem is a proof-of-principle which considers the automatic generation control signal as the only random parameter. Example MDPs are solved using the policy iteration algorithm. The optimal operating policies and gains are described. Results show that the value of an ESR can be increased substantially by using it for more than one purpose simultaneously.
Keywords :
Markov processes; energy storage; frequency control; optimisation; power grids; power system control; power system economics; ESR decision optimization problem; ancillary service capacity; automatic generation control signal; cooptimization mthod; energy price arbitrage; energy storage optimal operation; grid scale energy storage resource; infinite horizon Markov decision problem; optimal operating policy; policy iteration algorithm; random parameter; secondary frequency regulation capacity; Automatic generation control; Decision making; Discharges (electric); Equations; Infinite horizon; Optimization; System-on-chip; Markov decision problem (MDP); dynamic programming; energy markets; energy storage; frequency regulation; smart grid;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
North American Power Symposium (NAPS), 2013
Conference_Location :
Manhattan, KS
Type :
conf
DOI :
10.1109/NAPS.2013.6666917
Filename :
6666917
Link To Document :
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