Financial rights and tracing for energy storage

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations


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 languageEnglish (US)
Title of host publication2014 IEEE PES General Meeting / Conference and Exposition
PublisherIEEE Computer Society
ISBN (Electronic)9781479964154
StatePublished - Oct 29 2014
Externally publishedYes
Event2014 IEEE Power and Energy Society General Meeting - National Harbor, United States
Duration: Jul 27 2014Jul 31 2014

Publication series

NameIEEE Power and Energy Society General Meeting
ISSN (Print)1944-9925
ISSN (Electronic)1944-9933


Conference2014 IEEE Power and Energy Society General Meeting
Country/TerritoryUnited States
CityNational Harbor

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


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