Capacity value of variable renewable energy and energy storage
Name
1126791488-MIT.pdf
Size
6.46 MB
Format
Adobe PDF
Checksum (MD5)
d774e4d23da25ee6711479e6a0a6c21c
Author(s)
Byers, Conleigh.
Advisor(s)
Audun Botterud.
Alternative Title
Capacity value of VRE and energy storage
Date Issued
2018
Publisher
Massachusetts Institute of Technology
Abstract
Variable renewable energy (VRE) resources account for approximately half of new capacity additions in independent system operator (ISO) markets in the United States in the last five years. When designing and implementing capacity markets, system operators need to estimate future system capacity needs and often set maximum limits on the capacity different technologies can trade in the capacity market based on the expected contribution of each technology, including generation and demand, to system adequacy. Current capacity market designs often consider each resource independently, irrespective of the system's portfolio of resources, potentially overvaluing or undervaluing the capacity contribution of VRE and energy storage in the grid. We explore a method for calculating the standalone and integrated capacity value of an added VRE resource with existing energy storage resources. The difference between the integrated and standalone value is the portfolio effect, the additional capacity value gained by the synergy of VRE and the existing fleet. We also demonstrate a new method for translating a normalized expected unserved energy (EUE) target into required additional firm capacity and then into the standalone and integrated capacity values of an added VRE resource.
Description
Thesis: S.M. in Technology and Policy, Massachusetts Institute of Technology, School of Engineering, Institute for Data, Systems, and Society, Technology and Policy Program, 2018
Thesis: S.M., Massachusetts Institute of Technology, Department of Electrical Engineering and Computer Science, 2018
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 71-74).
Subjects
Institute for Data, Systems, and Society.
Technology and Policy Program.
Electrical Engineering and Computer Science.
MIT Department
Massachusetts Institute of Technology. Institute for Data, Systems, and Society
Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science
Massachusetts Institute of Technology. Engineering Systems Division
Technology and Policy Program
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