Journal
ENERGY JOURNAL
Volume 39, Issue -, Pages 101-122Publisher
INT ASSOC ENERGY ECONOMICS
DOI: 10.5547/01956574.39.SI1.mgiu
Keywords
Arbitrage; electricity markets; energy storage; market clearing; price forecasting
Categories
Funding
- EPSRC [EP/N001745/1, EPR062258/1, EP/K002228]
- UKERC [UKERC/FF3/3]
- Generalitat de Catalunya [2015-SGR-531]
- Spanish Ministry of Economy (MINECO/FEDER, UE) [ECO2015-69107-R]
Ask authors/readers for more resources
This paper examines the commercial opportunities for electrical energy storage, taking market prices as given and determining the extent to which a strategy of arbitrage across the day, buying at the lowest price times at night and selling at the highest price times during the early evening, and relying on price forecasts one day-ahead generates profits in the British context. The paper sets out the potential problems as the market moves to absorb increasing amounts of wind, then characterises the nature of prices, which reveals the importance of a strategy in which power is absorbed into store for a relatively few hours of the day and discharged over a relatively few hours. It argues that additional incentives may need to be put into place in order to render storage over relatively longer periods more attractive and to deliver broader social benefits which are unlikely to be generated and captured as a result of purely commercial considerations.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available