2025 Theses Doctoral
Facilitating the Social Welfare Convergence of Strategic Energy Storage in Electricity Markets
As grid-scale energy storage resources rapidly entered modern power systems since last decade, driven by decarbonization goals, they have begun transforming grid stability, market dynamics, and renewable energy integration. Energy storage resources, including batteries, pumped hydro, and emerging storage technologies, provide unmatched flexibility and fast response, enabling them to balance fluctuating renewable generation, smooth demand peaks, and offer ancillary services. Despite the technical advances in storage deployment, effectively integrating these resources into wholesale electricity markets to maximize both market efficiency and storage profitability presents significant challenges.
To address these challenges, this dissertation develops practical methods and models to facilitate energy storage participation and market integration. For energy storage participants, this dissertation proposes several advanced methods to manage the complexities of energy market arbitrage, including approaches to address price uncertainties and the nonlinear characteristics of storage operation. These techniques enable storage agents to improve profitability while aligning their operational safeties with dynamic market conditions. For system operators, a new market model is introduced to better integrate energy storage, accommodating the unique state-of-charge constraints, nonlinear physical characteristics, and fast-response capabilities of storage resources. This model facilitates more precise state-of-charge management, improving grid stability and the efficient deployment of storage assets.
To comprehensively evaluate bidding strategies and market designs, this dissertation presents a high-fidelity, WECC-based market simulation model. This model incorporates detailed system constraints, including transmission and two-stage market settlement, providing a realistic platform to test the impacts of storage participation on market outcomes. Simulations conducted with this framework explore the influence of strategic bidding under varying conditions and support the development of storage-inclusive market designs that promote efficient and reliable grid operations.
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More About This Work
- Academic Units
- Earth and Environmental Engineering
- Thesis Advisors
- Xu, Bolun
- Degree
- Ph.D., Columbia University
- Published Here
- January 29, 2025