2018/12/10 by Shantanu Chakraborty, Chakraborty, Shantanu, Kyri Baker +7
Energy · Engineering · #Electric Power System Optimization #Energy Efficiency and Management #FOS: Mathematics #Optimization and Control (math.OC) #Smart Grid Energy Management
paper · pdf · doi:10.48550/arxiv.1812.03797
openalex publication_date 2018/12/10 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Recently, the volatility associated with marginal prices has increased due to\nlarge scale integration of renewable generation. Price volatility is\nundesirable from a consumer perspective. To address this issue, we present a\nframework for hedging that uses duality theory for quantifying the amount of\ndemand-side flexibility required for constraining marginal prices to the\nconsumers maximum willingness to pay for electricity. Using our formulation, we\ninvestigate the ability of an Energy Storage System (ESS), as a demand-side\nflexibility source, to hedge against electricity price volatility across a\nmulti-time period horizon while accounting for its inter-temporal constraints.\nAdditionally, we analyze the economical benefit that operating the ESS under\ninformation forecasts brings to the consumers.\n