Public welfare energy storage system production

Can community energy storage improve social welfare?

As a price maker, the community energy storage can not only earn profits through energy arbitrage but also smooth price trajectories and further influence social welfare. We formulate the problem as a finite-horizon Markov decision process that aims to maximize the energy arbitrage and social welfare of the prosumer-based community.

How does energy storage affect consumer welfare?

With the growing scale of energy storage, the welfare benefits become significant, which may stimulate different ownership, such as consumers, producers and prosumers, to focus on their own welfare, thus further influencing storage use. In particular, consumers are likely to increase consumer surplus, so they tend to overuse storage.

Can strategic storage yield social welfare losses?

By definition, δC,C cannot result in social welfare losses compared to not having storage, since δC,C = 0 is feasible and δC,C is welfare-maximizing. To show that strategic storage cannot yield social welfare losses, note that δS,C > 0 if and only if: p 2 0 − η p 1 0 = W ′ 0 > 0.

Does welfare maximizing storage earn more benefits than profit-maximizing storage?

Case studies indicate that welfare-maximizing storage earns more benefits than profit-maximizing storage. The proposed threshold-based algorithm can guarantee optimality and largely decrease the computational complexity of standard stochastic dynamic programming.

Does energy storage allow for deep decarbonization of electricity production?

Our study extends the existing literature by evaluating the role of energy storage in allowing for deep decarbonization of electricity production through the use of weather-dependent renewable resources (i.e., wind and solar).

What is community energy storage?

Background and motivation Community energy storage is one of the advanced smart grid technologies in recent years, which provides lots of benefits for the electric power system in reliability, quality, economy and control .