Energy Storage Investment and Operation in Efficient Electric Power Systems
Author(s)
Junge, Cristian; Mallapragada, Dharik; Richard, Schmalensee
DownloadWorking Paper Energy Storage - Junge-Mallapragada-Schmalensee (3.614Mb)
Metadata
Show full item recordAbstract
We consider welfare-optimal investment in and operation of electric power systems with constant
returns to scale in multiple available generation and storage technologies under perfect foresight.
We extend a number of classic results on generation, derive conditions for investment and
operations of storage technologies described by seven cost/performance parameters, and develop
insights on power systems with multiple storage technologies. Simulation of a deeply
decarbonized “Texas-like” power system with two available storage technologies shows both the
non-existence of simple “merit-order” rules for storage operation and the value of frequency
domain analysis to describe efficient operation. Our analysis points to the critical role of the capital
cost of energy storage capacity in influencing efficient storage operation.
Date issued
2021-01-05Publisher
MIT Center for Energy and Environmental Policy Research
Keywords
energy, energy storage, electric power systems