RISK AND BENEFIT EVALUATION FOR ENERGY STORAGE UNDER DIFFERENTIATED MARKETS

Zhou Lili; Xiang Yue; Yan Xiaohe; Li Chiyu; Gou Jing

doi:10.19912/j.0254-0096.tynxb.2020-0504

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Acta Energiae Solaris Sinica ›› 2022, Vol. 43 ›› Issue (3) : 111-118. DOI: 10.19912/j.0254-0096.tynxb.2020-0504

RISK AND BENEFIT EVALUATION FOR ENERGY STORAGE UNDER DIFFERENTIATED MARKETS

Zhou Lili¹, Xiang Yue¹, Yan Xiaohe², Li Chiyu³, Gou Jing⁴

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Abstract

Energy storage（ES） benefits from its flexibility in charging and discharging can be applied in multiple electricity markets and obtain corresponding benefits. However, although ES can get profits, it also takes the risk of profit changes from different electricity markets. In addition, the market that ES participated with higher profit normally accompanies higher risks. In order to maximize the benefits with the minimum risk level, it is necessary to evaluate the risks and benefits of the markets that ES involved and optimize the capacity allocation of ES in different markets. A method for evaluating the risk and benefit of energy storage operation under differentiated markets is proposed, taking three markets into account, which are energy service market, peer-to-peer service market, and congestion service market. The risk and benefit calculation model of each markets and the optimal capacity allocation model for energy storage operator are designed based on the portfolio theory. The results show that the proposed model has a good theoretical and practical significance for evaluating the risk and profit of energy storage operator and guiding the allocation of its capacity.

Key words

energy storage / electricity market / risk analysis / benefit evaluation / capacity share optimization

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Zhou Lili, Xiang Yue, Yan Xiaohe, Li Chiyu, Gou Jing. RISK AND BENEFIT EVALUATION FOR ENERGY STORAGE UNDER DIFFERENTIATED MARKETS[J]. Acta Energiae Solaris Sinica. 2022, 43(3): 111-118 https://doi.org/10.19912/j.0254-0096.tynxb.2020-0504

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