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Title: Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects

Abstract

Here, significant increases in prices and price volatility of natural gas and electricity have raised interest in the potential economic opportunities for electricity storage. In this paper, we analyze the arbitrage value of a price-taking storage device in PJM during the six-year period from 2002 to 2007, to understand the impact of fuel prices, transmission constraints, efficiency, storage capacity, and fuel mix. The impact of load-shifting for larger amounts of storage, where reductions in arbitrage are offset by shifts in consumer and producer surplus as well as increases in social welfare from a variety of sources, is also considered.

Authors:
 [1];  [2];  [2];  [3]
  1. The Ohio State Univ., Columbus, OH (United States)
  2. National Renewable Energy Lab. (NREL), Golden, CO (United States)
  3. Point Carbon North America, Washington, D.C. (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1353367
Grant/Contract Number:  
AC36-08GO28308
Resource Type:
Accepted Manuscript
Journal Name:
Energy Economics
Additional Journal Information:
Journal Volume: 31; Journal Issue: 2; Journal ID: ISSN 0140-9883
Publisher:
Elsevier
Country of Publication:
United States
Language:
English
Subject:
25 ENERGY STORAGE; 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 29 ENERGY PLANNING, POLICY, AND ECONOMY; energy storage; arbitrage; social welfare

Citation Formats

Sioshansi, Ramteen, Denholm, Paul, Jenkin, Thomas, and Weiss, Jurgen. Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects. United States: N. p., 2008. Web. doi:10.1016/j.eneco.2008.10.005.
Sioshansi, Ramteen, Denholm, Paul, Jenkin, Thomas, & Weiss, Jurgen. Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects. United States. doi:10.1016/j.eneco.2008.10.005.
Sioshansi, Ramteen, Denholm, Paul, Jenkin, Thomas, and Weiss, Jurgen. Fri . "Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects". United States. doi:10.1016/j.eneco.2008.10.005. https://www.osti.gov/servlets/purl/1353367.
@article{osti_1353367,
title = {Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects},
author = {Sioshansi, Ramteen and Denholm, Paul and Jenkin, Thomas and Weiss, Jurgen},
abstractNote = {Here, significant increases in prices and price volatility of natural gas and electricity have raised interest in the potential economic opportunities for electricity storage. In this paper, we analyze the arbitrage value of a price-taking storage device in PJM during the six-year period from 2002 to 2007, to understand the impact of fuel prices, transmission constraints, efficiency, storage capacity, and fuel mix. The impact of load-shifting for larger amounts of storage, where reductions in arbitrage are offset by shifts in consumer and producer surplus as well as increases in social welfare from a variety of sources, is also considered.},
doi = {10.1016/j.eneco.2008.10.005},
journal = {Energy Economics},
number = 2,
volume = 31,
place = {United States},
year = {2008},
month = {10}
}

Journal Article:
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