Value of storage in distribution grids-competition or cooperation of stakeholders?

Stefan Nykamp, M.G.C. Bosman, Albert Molderink, Johann L. Hurink, Gerardus Johannes Maria Smit

Research output: Contribution to journalArticleAcademicpeer-review

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Abstract

The implementation of storage capacities in distribution grids is seen as an important element for the integration of fluctuating feed-in caused by photovoltaic and wind generators. However, the responsibility for the operating of these assets is not defined in most market designs. Since decreasing costs are to be expected with further market penetration, next to distribution grid operators (DSO) further storage stakeholders may be interested in controlling local storage devices. In this paper optimal storage profiles for different stakeholders (DSO and energy traders) are derived based on a case study with real world data. The results reveal conflicting interests - peak shaving of fluctuating feed-in (objective of the DSO to avoid reinforcements) is hampered significantly by storage usage of trading companies (objective of exploiting price spreads in the spotmarket). It is shown that unreasonable high costs occur with undesired economical side-effects if no control or cooperation mechanism is implemented.
Original languageUndefined
Pages (from-to)1361-1370
Number of pages10
JournalIEEE transactions on smart grid
Volume4
Issue number3
DOIs
Publication statusPublished - Sep 2013

Keywords

  • EWI-23597
  • Electricity supply industry deregulation
  • power distribution
  • power generation
  • IR-87020
  • photovoltaic cells
  • Energy management
  • Energy storage
  • METIS-297785
  • Smart Grids

Cite this

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title = "Value of storage in distribution grids-competition or cooperation of stakeholders?",
abstract = "The implementation of storage capacities in distribution grids is seen as an important element for the integration of fluctuating feed-in caused by photovoltaic and wind generators. However, the responsibility for the operating of these assets is not defined in most market designs. Since decreasing costs are to be expected with further market penetration, next to distribution grid operators (DSO) further storage stakeholders may be interested in controlling local storage devices. In this paper optimal storage profiles for different stakeholders (DSO and energy traders) are derived based on a case study with real world data. The results reveal conflicting interests - peak shaving of fluctuating feed-in (objective of the DSO to avoid reinforcements) is hampered significantly by storage usage of trading companies (objective of exploiting price spreads in the spotmarket). It is shown that unreasonable high costs occur with undesired economical side-effects if no control or cooperation mechanism is implemented.",
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Value of storage in distribution grids-competition or cooperation of stakeholders? / Nykamp, Stefan; Bosman, M.G.C.; Molderink, Albert; Hurink, Johann L.; Smit, Gerardus Johannes Maria.

In: IEEE transactions on smart grid, Vol. 4, No. 3, 09.2013, p. 1361-1370.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Value of storage in distribution grids-competition or cooperation of stakeholders?

AU - Nykamp, Stefan

AU - Bosman, M.G.C.

AU - Molderink, Albert

AU - Hurink, Johann L.

AU - Smit, Gerardus Johannes Maria

N1 - eemcs-eprint-23597

PY - 2013/9

Y1 - 2013/9

N2 - The implementation of storage capacities in distribution grids is seen as an important element for the integration of fluctuating feed-in caused by photovoltaic and wind generators. However, the responsibility for the operating of these assets is not defined in most market designs. Since decreasing costs are to be expected with further market penetration, next to distribution grid operators (DSO) further storage stakeholders may be interested in controlling local storage devices. In this paper optimal storage profiles for different stakeholders (DSO and energy traders) are derived based on a case study with real world data. The results reveal conflicting interests - peak shaving of fluctuating feed-in (objective of the DSO to avoid reinforcements) is hampered significantly by storage usage of trading companies (objective of exploiting price spreads in the spotmarket). It is shown that unreasonable high costs occur with undesired economical side-effects if no control or cooperation mechanism is implemented.

AB - The implementation of storage capacities in distribution grids is seen as an important element for the integration of fluctuating feed-in caused by photovoltaic and wind generators. However, the responsibility for the operating of these assets is not defined in most market designs. Since decreasing costs are to be expected with further market penetration, next to distribution grid operators (DSO) further storage stakeholders may be interested in controlling local storage devices. In this paper optimal storage profiles for different stakeholders (DSO and energy traders) are derived based on a case study with real world data. The results reveal conflicting interests - peak shaving of fluctuating feed-in (objective of the DSO to avoid reinforcements) is hampered significantly by storage usage of trading companies (objective of exploiting price spreads in the spotmarket). It is shown that unreasonable high costs occur with undesired economical side-effects if no control or cooperation mechanism is implemented.

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KW - Electricity supply industry deregulation

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KW - power generation

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KW - METIS-297785

KW - Smart Grids

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