ORIE Colloquium, 2012-09-25 - Michael Ferris: The Price of Energy Storage
From E. Cornelius
Michael Ferris (Wisconsin) - The Price of Energy Storage Tuesday, September 25, 2012 at 4:15pm Frank H. T. Rhodes Hall, 253 Uncertainty in forecasts and hourly fluctuations in demand are important stochastic effects that can be mitigated by storage (new batteries, pumping water uphill, charging EPV's). Determining the value of storage is a critical component to stimulate design and implementation of energy storage facilities and an associated market. We propose a multi-period stochastic MOPEC (multiple optimization problems with equilibrium constraints) formulation for the economic planning problem and exhibit the use of hydro, thermal, nuclear and renewable energy sources, coupled with mechanisms to store energy between periods and endogenously determine the price for storage. Extensions of the framework that facilitate hitting environmental goals within a non-cooperative generation capability will also be outlined. The model is implemented using the GAMS/EMP framework, and solved using a combination of the PATH solver, and global optimization solvers. This is joint work with Jesse Holzer, Yanchao Liu, and Lisa Tang.