A dynamic programming approach to estimate the capacity value of energy storage
Abstract
Here, we present a method to estimate the capacity value of storage. Our method uses a dynamic program to model the effect of power system outages on the operation and state of charge of storage in subsequent periods. We combine the optimized dispatch from the dynamic program with estimated system loss of load probabilities to compute a probability distribution for the state of charge of storage in each period. This probability distribution can be used as a forced outage rate for storage in standard reliabilitybased capacity value estimation methods. Our proposed method has the advantage over existing approximations that it explicitly captures the effect of system shortage events on the state of charge of storage in subsequent periods. We also use a numerical case study, based on five utility systems in the U.S., to demonstrate our technique and compare it to existing approximation methods.
 Authors:

 The Ohio State Univ., Columbus, OH (United States)
 National Renewable Energy Lab. (NREL), Golden, CO (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:
 1355932
 Grant/Contract Number:
 AC3608GO28308
 Resource Type:
 Accepted Manuscript
 Journal Name:
 IEEE Transactions on Power Systems
 Additional Journal Information:
 Journal Volume: 29; Journal Issue: 1; Journal ID: ISSN 08858950
 Publisher:
 IEEE
 Country of Publication:
 United States
 Language:
 English
 Subject:
 14 SOLAR ENERGY; 25 ENERGY STORAGE; reliability theory; approximation techniques; capacity value; energy storage
Citation Formats
Sioshansi, Ramteen, Madaeni, Seyed Hossein, and Denholm, Paul. A dynamic programming approach to estimate the capacity value of energy storage. United States: N. p., 2013.
Web. doi:10.1109/TPWRS.2013.2279839.
Sioshansi, Ramteen, Madaeni, Seyed Hossein, & Denholm, Paul. A dynamic programming approach to estimate the capacity value of energy storage. United States. doi:10.1109/TPWRS.2013.2279839.
Sioshansi, Ramteen, Madaeni, Seyed Hossein, and Denholm, Paul. Tue .
"A dynamic programming approach to estimate the capacity value of energy storage". United States. doi:10.1109/TPWRS.2013.2279839. https://www.osti.gov/servlets/purl/1355932.
@article{osti_1355932,
title = {A dynamic programming approach to estimate the capacity value of energy storage},
author = {Sioshansi, Ramteen and Madaeni, Seyed Hossein and Denholm, Paul},
abstractNote = {Here, we present a method to estimate the capacity value of storage. Our method uses a dynamic program to model the effect of power system outages on the operation and state of charge of storage in subsequent periods. We combine the optimized dispatch from the dynamic program with estimated system loss of load probabilities to compute a probability distribution for the state of charge of storage in each period. This probability distribution can be used as a forced outage rate for storage in standard reliabilitybased capacity value estimation methods. Our proposed method has the advantage over existing approximations that it explicitly captures the effect of system shortage events on the state of charge of storage in subsequent periods. We also use a numerical case study, based on five utility systems in the U.S., to demonstrate our technique and compare it to existing approximation methods.},
doi = {10.1109/TPWRS.2013.2279839},
journal = {IEEE Transactions on Power Systems},
number = 1,
volume = 29,
place = {United States},
year = {2013},
month = {9}
}
Web of Science