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Profit Maximizing Storage Integration in AC Power Networks

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Book cover Energy Markets and Responsive Grids

Part of the book series: The IMA Volumes in Mathematics and its Applications ((IMA,volume 162))

Abstract

This work demonstrates that there is an analytical relationship between nodal price signals and the optimal allocation and operation of distributed energy storage systems (ESSs) in alternating current (AC) power networks. The results are based on a semidefinite relaxation of a multi-period optimal power flow (OPF) with storage problem in which the ESSs provide both real and reactive power to the grid. Strong duality is exploited to define a storage operator subproblem that is used to elucidate the natural duality between minimizing system costs and maximizing the profits of the storage operator in purely competitive markets. We illustrate these theoretical relationships, which require strong duality to hold, and discuss their impact on siting decisions using case studies based on an augmented IEEE benchmark system. We focus on how the provision of reactive power in combination with traditional grid services changes both the ESS allocation strategy and the overall performance of the simulated power network. Our results highlight the tight connections between market design and the financial viability of large-scale storage integration in AC power systems.

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Acknowledgment

This work was partially supported through the National Science Foundation (grant numbers ECCS 1230788 and OISE 1243482) and Sandia National Laboratories’ Laboratory Directed Research and Development (LDRD) program. The authors would also like to thank Benjamin Hobbs for useful discussions.

Author information

Authors and Affiliations

  1. Sandia National Laboratories, Albuquerque, NM, USA

    Anya Castillo

  2. Johns Hopkins University, Baltimore, MD, USA

    Dennice F. Gayme

Authors
  1. Anya Castillo
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  2. Dennice F. Gayme
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Corresponding author

Correspondence to Dennice F. Gayme .

Editor information

Editors and Affiliations

  1. Department of Electrical and Computer Engineering, University of Florida, Gainesville, Florida, USA

    Sean Meyn

  2. Technological Leadership Institute, University of Minnesota, Minneapolis, Minnesota, USA

    Tariq Samad

  3. Department of Electrical Engineering and Computer Science, University of Michigan, Ann Arbor, Michigan, USA

    Ian Hiskens

  4. Department of Electronic Systems, Aalborg University, Aalborg, Denmark

    Jakob Stoustrup

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Castillo, A., Gayme, D.F. (2018). Profit Maximizing Storage Integration in AC Power Networks. In: Meyn, S., Samad, T., Hiskens, I., Stoustrup, J. (eds) Energy Markets and Responsive Grids. The IMA Volumes in Mathematics and its Applications, vol 162. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-7822-9_11

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