Can negative electricity prices encourage inefficient electrical energy storage devices?

Research output: Contribution to journalArticle

Authors

Abstract

This paper explores whether negative electricity prices can change the rationale that efficient energy storage devices are more economical for arbitrage in electricity markets. An established model algorithm to determine the maximum available arbitrage revenue and optimum schedule of electrical energy storage (EES) operation is used to simulate storage with a time-series of electricity prices which includes some negative prices. Our results suggest that at any likely frequency of negative electricity prices, inefficient EES is not encouraged, and can only be encouraged for EES devices with very low energy capacity to power ratios.

Details

Original languageEnglish
Pages (from-to)862-876
JournalInternational Journal of Environmental Studies
Volume71
Issue number6
Early online date30 Oct 2014
Publication statusPublished - 2014

Keywords

  • Energy storage, Negative electricity prices