Dual technology energy storage system applied to two complementary energy markets

Abstract

This paper deals with integrating energy storage systems (ESS) into existing electricity markets. We explain why ESS increase flexibility of power systems and energy markets and why more flexible systems and markets are desirable, particularly in a context of high integration of variable renewable energy sources (RES). The Dutch electricity markets are introduced as the case studies. As opposing to the existing literature, we focus on implementation of a dual technology ESS, which we believe is more beneficial than a single ESS. To show this, we introduce an optimal control model, in which the goal is to maximize the revenues of the dual technology energy storage system applied into two different energy markets, assuming the selling and buying electricity prices are exogenous. Subsequently, we introduce our model, using a simple strategy and present its results, showing the impact of the devices nominal rating on the potential revenues.