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Strategic Storage Operation in Wholesale Electricity Markets: A Game Theoretic Analysis

  • Singapore University of Technology and Design
  • Chinese University of Hong Kong
  • Engineering Systems and Design Pillar

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

To investigate the impact of the strategic operation of large-scale energy storage systems on wholesale electricity markets, we construct a Cournot competition model where multiple merchant storage owners and the market maker (social planner) move simultaneously. Each merchant storage owner seeks to maximize its own profit whereas the market maker makes the centralized generation dispatch and power network rebalancing decisions to maximize the social welfare. We show the existence and uniqueness of the Cournot equilibrium. We further show that the social welfare achieved at the Cournot equilibrium is always no less than that achieved in a market without energy storage. Numerical experiments are conducted on the IEEE RTS-24 bus test system to validate established results.

Original languageEnglish
Title of host publication2019 IEEE 58th Conference on Decision and Control, CDC 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages2201-2207
Number of pages7
ISBN (Electronic)9781728113982
DOIs
StatePublished - Dec 2019
Externally publishedYes
Event58th IEEE Conference on Decision and Control, CDC 2019 - Nice, France
Duration: 11 Dec 201913 Dec 2019

Publication series

NameProceedings of the IEEE Conference on Decision and Control
Volume2019-December
ISSN (Print)0743-1546
ISSN (Electronic)2576-2370

Conference

Conference58th IEEE Conference on Decision and Control, CDC 2019
Country/TerritoryFrance
CityNice
Period11/12/1913/12/19

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