Financial rights and tracing for energy storage

Joshua A. Taylor

doi:10.1109/PESGM.2014.6938936

Financial rights and tracing for energy storage

Joshua A. Taylor

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

1 Scopus citations

Abstract

There has been recent discussion as to whether energy storage should be an active market participant that buys and sells power at wholesale prices or a passive entity like a transmission line. In the latter case, new market mechanisms must be developed to integrate storage into electricity markets. In this paper, we define financial rights for energy storage. As with financial transmission rights, risk-averse market participants can acquire the storage rights to hedge against nodal price volatility resulting from storage congestion. We demonstrate that the rights specify how a system operator can redistribute budget surpluses resulting from storage congestion, as flowgate rights do for transmission congestion. We also derive a tracing rule that enables power flows through transmission lines and storage to be decomposed into present and past nodal contributions.

Original language	English (US)
Title of host publication	2014 IEEE PES General Meeting / Conference and Exposition
Publisher	IEEE Computer Society
Edition	October
ISBN (Electronic)	9781479964154
DOIs	https://doi.org/10.1109/PESGM.2014.6938936
State	Published - Oct 29 2014
Externally published	Yes
Event	2014 IEEE Power and Energy Society General Meeting - National Harbor, United States Duration: Jul 27 2014 → Jul 31 2014

Publication series

Name	IEEE Power and Energy Society General Meeting
Number	October
Volume	2014-October
ISSN (Print)	1944-9925
ISSN (Electronic)	1944-9933

Conference

Conference	2014 IEEE Power and Energy Society General Meeting
Country/Territory	United States
City	National Harbor
Period	7/27/14 → 7/31/14

All Science Journal Classification (ASJC) codes

Energy Engineering and Power Technology
Nuclear Energy and Engineering
Renewable Energy, Sustainability and the Environment
Electrical and Electronic Engineering

Access to Document

10.1109/PESGM.2014.6938936

Cite this

@inproceedings{6c1b761c5ac240dd8dc0d3ba2c5ee209,

title = "Financial rights and tracing for energy storage",

abstract = "There has been recent discussion as to whether energy storage should be an active market participant that buys and sells power at wholesale prices or a passive entity like a transmission line. In the latter case, new market mechanisms must be developed to integrate storage into electricity markets. In this paper, we define financial rights for energy storage. As with financial transmission rights, risk-averse market participants can acquire the storage rights to hedge against nodal price volatility resulting from storage congestion. We demonstrate that the rights specify how a system operator can redistribute budget surpluses resulting from storage congestion, as flowgate rights do for transmission congestion. We also derive a tracing rule that enables power flows through transmission lines and storage to be decomposed into present and past nodal contributions.",

author = "Taylor, {Joshua A.}",

note = "Publisher Copyright: {\textcopyright} 2014 IEEE.; 2014 IEEE Power and Energy Society General Meeting ; Conference date: 27-07-2014 Through 31-07-2014",

year = "2014",

month = oct,

day = "29",

doi = "10.1109/PESGM.2014.6938936",

language = "English (US)",

series = "IEEE Power and Energy Society General Meeting",

publisher = "IEEE Computer Society",

number = "October",

booktitle = "2014 IEEE PES General Meeting / Conference and Exposition",

address = "United States",

edition = "October",

}

Taylor, JA 2014, Financial rights and tracing for energy storage. in 2014 IEEE PES General Meeting / Conference and Exposition. October edn, 6938936, IEEE Power and Energy Society General Meeting, no. October, vol. 2014-October, IEEE Computer Society, 2014 IEEE Power and Energy Society General Meeting, National Harbor, United States, 7/27/14. https://doi.org/10.1109/PESGM.2014.6938936

TY - GEN

T1 - Financial rights and tracing for energy storage

AU - Taylor, Joshua A.

PY - 2014/10/29

Y1 - 2014/10/29

N2 - There has been recent discussion as to whether energy storage should be an active market participant that buys and sells power at wholesale prices or a passive entity like a transmission line. In the latter case, new market mechanisms must be developed to integrate storage into electricity markets. In this paper, we define financial rights for energy storage. As with financial transmission rights, risk-averse market participants can acquire the storage rights to hedge against nodal price volatility resulting from storage congestion. We demonstrate that the rights specify how a system operator can redistribute budget surpluses resulting from storage congestion, as flowgate rights do for transmission congestion. We also derive a tracing rule that enables power flows through transmission lines and storage to be decomposed into present and past nodal contributions.

AB - There has been recent discussion as to whether energy storage should be an active market participant that buys and sells power at wholesale prices or a passive entity like a transmission line. In the latter case, new market mechanisms must be developed to integrate storage into electricity markets. In this paper, we define financial rights for energy storage. As with financial transmission rights, risk-averse market participants can acquire the storage rights to hedge against nodal price volatility resulting from storage congestion. We demonstrate that the rights specify how a system operator can redistribute budget surpluses resulting from storage congestion, as flowgate rights do for transmission congestion. We also derive a tracing rule that enables power flows through transmission lines and storage to be decomposed into present and past nodal contributions.

UR - http://www.scopus.com/inward/record.url?scp=84930986744&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84930986744&partnerID=8YFLogxK

U2 - 10.1109/PESGM.2014.6938936

DO - 10.1109/PESGM.2014.6938936

M3 - Conference contribution

AN - SCOPUS:84930986744

T3 - IEEE Power and Energy Society General Meeting

BT - 2014 IEEE PES General Meeting / Conference and Exposition

PB - IEEE Computer Society

T2 - 2014 IEEE Power and Energy Society General Meeting

Y2 - 27 July 2014 through 31 July 2014

ER -

Financial rights and tracing for energy storage

Abstract

Publication series

Conference

All Science Journal Classification (ASJC) codes

Access to Document

Other files and links

Fingerprint

Cite this