Impact of Greedy Energy Storage Operation on Power System Stability: A Prosumer-Centric Approach

The incorporation of renewable-based distributed generators (DGs) and energy storage systems (ESS) is significantly altering power systems, particularly with the emergence of prosumers-entities that both consume and produce electricity. Despite numerous studies addressing optimal ESS scheduling and system modeling, there is a lack of research examining the direct effects of prosumer-centric, profit-maximizing ('greedy') ESS operation on the stability of power systems. This paper presents a two-step framework: (1) a model based on echo-state networks (ESN) for predicting system marginal prices (SMP), and (2) the application of dynamic programming to establish optimal energy storage system charge/discharge schedules aimed at maximizing consumer profits. The methodology is validated through EMTP-RV simulations on the IEEE 14-bus system, where the transient response of the grid to different ESS operational strategies is quantitatively assessed. The findings indicate that although greedy ESS operation mitigates overshoot in dq axis voltage and current, it may prolong settling time and potentially induce oscillations depending on the discharge strategies employed. This study emphasizes the essential requirement for achieving a balance between economic optimization and grid stability in future prosumer-driven power systems.