Imperial College London
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ProfessorRichardGreen

Business School

Head of the Department of Economics and Public Policy
 
 
 
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Contact

 

+44 (0)20 7594 2611r.green Website CV

 
 
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Location

 

415City and Guilds BuildingSouth Kensington Campus

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Summary

 

Publications

Citation

BibTex format

@article{Geske:2020:10.5547/01956574.41.2.jges,
author = {Geske, J and Green, R},
doi = {10.5547/01956574.41.2.jges},
journal = {Energy Journal},
pages = {1--28},
title = {Optimal storage, investment and management under uncertainty: it is costly to avoid outages!},
url = {http://dx.doi.org/10.5547/01956574.41.2.jges},
volume = {41},
year = {2020}
}
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RIS format (EndNote, RefMan)

TY  - JOUR
AB  - We show  how  electricity storage  is  operated  optimally  when  the  load  net  of  renewable output  is  uncertain.  We  estimate  a  diurnal  Markov-process  representation  of  how Germany’s  residual  load  changed  from  hour  to  hour  and  design  a  simple  dynamic  stochastic  electricity  system  model  with  non-intermittent  generation  technologies  and  storage.  We  derive  the  optimal  storage,  generator output  and  capacity  levels.    If  storage  capacity  replaces  some  generation  capacity,  the  optimal  storage  strategy  must balance  arbitrage  (between  periods  of  high  and  low  marginal  cost)  against precautionary  storage  to  ensure  energy  is  available  throughout  a  long  peak  in  net  demand.  Solvingthe  model  numerically  under  uncertainty  (only  the  transition  probabilities  to  future  loads  are  known),  we  compare  the  results  to  perfect  foresight  findings.    The  latter  over-estimate  the  cost-saving potential of energy storage by 27%, as storage can take up arbitrage opportunities that would not be chosen if there was a need for precautionary storage.
AU  - Geske,J
AU  - Green,R
DO  - 10.5547/01956574.41.2.jges
EP  - 28
PY  - 2020///
SN  - 0195-6574
SP  - 1
TI  - Optimal storage, investment and management under uncertainty: it is costly to avoid outages!
T2  - Energy Journal
UR  - http://dx.doi.org/10.5547/01956574.41.2.jges
UR  - http://www.iaee.org/en/publications/ejarticle.aspx?id=3475
UR  - http://hdl.handle.net/10044/1/74251
VL  - 41
ER  -
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