Real-Time Storage and Demand Management
Seminar Room 1, Newton Institute
AbstractWe review recent results on storage and demand management obtained using stochastic modelling. First, we study a model of storage used as a secondary reserve in an electrical grid. We analyze storage scheduling policies, in particular the fixed offset policy of Bejan et al.; we consider the impact of energy conversion efficiency and of the quality of renewable predictions. We find that there is a bound on the performance of any scheduling policy, which is tight for large enough storage capacity. We also find strategies that outperform the proposed fixed level policies. Second, we study the effect of energy storage on the efficiency of the real time electricity market. We show the existence of a competitive equilibrium; further, storage is beneficial in the sense that the resulting price process in presence of storage is smoother and concentrates on the marginal production cost. However, we find that consumers and stand-alone storage operators have an incentive to under-dimension their storage system. Third, we propose a system-wide model for real-time demand response. The model shows that evaporation, namely the fraction of delayed demand that eventually disappears, plays a central role. The model also suggests that large backlogs of delayed demand may accumulate and make predictions difficult.
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