Optimal Management and Sizing of Energy Storage Under Dynamic Pricing for the Efficient Integration of Renewable Energy

被引:193
作者
Harsha, Pavithra [1 ]
Dahleh, Munther [2 ]
机构
[1] IBM Watson Res Ctr, Business Analyt & Math Sci, Yorktown Hts, NY 10598 USA
[2] MIT, Lab Informat & Decis Syst, Cambridge, MA 02139 USA
关键词
Dynamic programming/optimal control; energy storage; operations; infinite horizon; investment; management; pricing; renewable energy;
D O I
10.1109/TPWRS.2014.2344859
中图分类号
TM [电工技术]; TN [电子技术、通信技术];
学科分类号
080906 [电磁信息功能材料与结构]; 082806 [农业信息与电气工程];
摘要
We address the optimal energy storage management and sizing problem in the presence of renewable energy and dynamic pricing associated with electricity from the grid. We formulate the problem as a stochastic dynamic program that aims to minimize the long-run average cost of electricity used and investment in storage, if any, while satisfying all the demand. We model storage with ramp constraints, conversion losses, dissipation losses and an investment cost. We prove the existence of an optimal storage management policy under mild assumptions and show that it has a dual threshold structure. Under this policy, we derive structural results, which indicate that the marginal value from storage decreases with its size and that the optimal storage size can be computed efficiently. We prove a rather surprising result, as we characterize the maximum value of storage under constant prices and i.i.d. net-demand processes: if the storage is a profitable investment, then the ratio of the amortized cost of storage to the constant price is less than 1/4. We further perform sensitivity analysis on the size of optimal storage and its gain via a case study. Finally, with a computational study on real data, we demonstrate significant savings with energy storage.
引用
收藏
页码:1164 / 1181
页数:18
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