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DOE OSTI2023

Clean Energy Technology Applications on US Mine Land: Technical Analysis

As the United States transitions toward a clean energy economy, an opportunity exists for redeveloping the more than 17,000 mine land sites located across the nation with clean energy technologies, which have a combined potential for generating more than 85 GW of clean electricity. This report provides an overview of the potential of demonstrating and deploying clean energy projects on current and former mine land. Clean energy project refers to a project that demonstrates one or more of the following technologies: solar; microgrids; geothermal; direct air capture; fossil-fueled electricity generation with carbon capture, utilization, and sequestration; energy storage, including pumped storage hydropower and compressed air energy storage; and advanced nuclear technologies. The report discusses the following technologies and their potential for creating jobs and generating tax revenue that would result in direct and indirect benefits to the local economy: Solar photovoltaics (PV) is being developed on current and former mine land in various parts of the world, including the United States. This approach is attractive because it requires limited infrastructure investment and would utilize the bare surfaces of mines and tailing ponds. Solar resource availability may be greater in the southern regions, including the Interior and Appalachian Basins and the southwestern United States. However, since some mine land sites include areas of significant change in elevation, the deployment of PV on mine land may require sophisticated planning to account for shading and irradiance, or may require regrading of the areas. PV does not create significant environmental risks and generally does not face public resistance; Geothermal systems are often spatially and genetically associated with ore deposits, and in some cases, they have been discovered while in search for epithermal mineral resources. Numerous diverse geothermal applications have been employed at mine land around the world, including power generation, mineral extraction from geothermal brines, process heating, direct use for other mining operations, and direct use for non-mining operations and subsurface energy storage, including geothermal heat pumps. Case studies highlighting these applications provide key lessons relating to identifying drivers and barriers to geothermal resource deployment and can be used to create screening tools for identifying the types and locations of mine land most amenable to utilizing geothermal resources; Carbon capture, utilization, and sequestration technologies include direct air capture (DAC) and enhanced weathering. DAC technologies include air contactors, regeneration systems, and CO 2 compression systems. Captured CO 2 can be converted to valuable feedstocks or possibly injected into abandoned subsurface mines where it would be absorbed by alkaline rock waste and mine tailings or by the porous minerals along the walls of the mine. DAC systems can be coupled with energy sources such as wind, solar, grid, or geothermal. Many DAC systems require a source of water or steam; however, some are expected to be net producers of water. Local impacts of DAC systems are expected to be low, and are related to land footprint, material disposal, and upstream impacts of energy and material production; Compressed air energy storage is an established energy storage technology in salt caverns. It has the potential for implementation in underground mines by pressurizing and storing a large amount of air using electrical compressors when excess electricity is available. When a need for discharge emerges, the air is used to spin turbines and produce the necessary volume of electricity. Abandoned or unused mine openings, including shafts, adits, access tunnels, and mined workings of any orientation, offer potential for vast amounts of compressed air energy storage if the site characteristics meet operational requirements; Pumped hydropower storage can be implemented in surface and subsurface mines. In surface mine applications, both reservoirs may be located in a mine pit or artificial reservoirs made of excavated materials. In subsurface mines, the lower reservoir may be implemented by waterproofing and flooding mine shafts and tunnels. The water is then pumped from the lower reservoir to the upper reservoir during periods of low load and high production, and it is discharged through the turbines during periods of peak demand. The potential environmental damages associated with acidity of mine water or the presence of toxic chemicals incentivizes the development of closed-loop technologies, in which water circulates inside the pumped hydropower facility without being discharged into the external water basins; Advanced nuclear energy technologies include small modular reactors, which can be deployed locally to produce electricity and heat. Such units require seismic stability and a supply of cooling water, but population constraints may exist in some areas. Therefore, remote mine land could represent an optimal location for siting advanced nuclear energy technologies.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

Integrated Heat Pump Thermal Storage and Power Cycle for CSP (Final Technical Report)

Pumped thermal energy storage (PTES) is a storage system that stores electricity in thermal reservoirs. In this project, methods of integrating PTES with concentrating solar power (CSP) systems were investigated and their feasibility evaluated. Hybrid "solar-PTES" devices can provide both flexible renewable power generation as well as a variety of electricity storage services. Techno-economic models of PTES and solar-PTES were developed and used to assess their performance, cost, and commercial viability. Systems were optimized using multi-objective optimization techniques. The value that these storage devices provide to the grid was estimated using production cost modelling. Key advances made in this project include the development of detailed techno-economic models that improve state-of-the-art assessments of these technologies. Off-design models were developed and used in grid-analysis models. This work describes for the first time how PTES and solar-PTES behave over a range of operating points and assesses the value that these systems can provide to the electrical grid. Feedback was obtained from experts in the field, which clarified key technological and economic barriers that must be addressed to improve the feasibility of these devices.

14 SOLAR ENERGY↗

DOE OSTI2017

Impact of Water Use by Utility-Scale Solar on Groundwater Resources of the Chuckwalla Basin, CA: Final Modeling Report

The DOE and BLM identified 285,000 acres of desert land in the Chuckwalla valley in the western U.S., for solar energy development. In addition to several approved solar projects, a pumped storage project was recently proposed to pump nearly 8000 acre-ft-yr of groundwater to store and stabilize solar energy output. This study aims at providing estimates of the amount of naturally-occurring recharge, and to estimate the impact of the pumping on the water table. To better provide the locations and intensity of natural recharge, this study employs an integrated, physically-based hydrologic model, PAWS+CLM, to calculate recharge. Then, the simulated recharge is used in a parameter estimation package to calibrate spatially-distributed K field. This design is to incorporate all available observational data, including soil moisture monitoring stations, groundwater head, and estimates of groundwater conductivity, to constrain the modeling. To address the uncertainty of the soil parameters, an ensemble of simulations are conducted, and the resulting recharges are either rejected or accepted based on calibrated groundwater head and local variation of the K field. The results indicate that the natural total inflow to the study domain is between 7107 and 12,772 afy. During the initial-fill phase of pumped storage project, the total outflow exceeds the upper bound estimate of the inflow. If the initial-fill is annualized to 20 years, the average pumping is more than the lower bound of inflows. The results indicate after adding the pumped storage project, the system will nearing, if not exceeding, its maximum renewable pumping capacity. The accepted recharges lead to a drawdown range of 24 to 45 ft for an assumed specific yield of 0.05. However, the drawdown is sensitive to this parameter, whereas there is insufficient data to adequately constrain this parameter.

14 SOLAR ENERGY↗

DOE OSTI2012

Quantifying the Value of Hydropower in the Electric Grid: Final Report

The report summarizes research to Quantify the Value of Hydropower in the Electric Grid. This 3-year DOE study focused on defining value of hydropower assets in a changing electric grid. Methods are described for valuation and planning of pumped storage and conventional hydropower. The project team conducted plant case studies, electric system modeling, market analysis, cost data gathering, and evaluations of operating strategies and constraints. Five other reports detailing these research results are available a project website, www.epri.com/hydrogrid. With increasing deployment of wind and solar renewable generation, many owners, operators, and developers of hydropower have recognized the opportunity to provide more flexibility and ancillary services to the electric grid. To quantify value of services, this study focused on the Western Electric Coordinating Council region. A security-constrained, unit commitment and economic dispatch model was used to quantify the role of hydropower for several future energy scenarios up to 2020. This hourly production simulation considered transmission requirements to deliver energy, including future expansion plans. Both energy and ancillary service values were considered. Addressing specifically the quantification of pumped storage value, no single value stream dominated predicted plant contributions in various energy futures. Modeling confirmed that service value depends greatly on location and on competition with other available grid support resources. In this summary, ten different value streams related to hydropower are described. These fell into three categories; operational improvements, new technologies, and electricity market opportunities. Of these ten, the study was able to quantify a monetary value in six by applying both present day and future scenarios for operating the electric grid. This study confirmed that hydropower resources across the United States contribute significantly to operation of the grid in terms of energy, capacity, and ancillary services. Many potential improvements to existing hydropower plants were found to be cost-effective. Pumped storage is the most likely form of large new hydro asset expansions in the U.S. however, justifying investments in new pumped storage plants remains very challenging with current electricity market economics. Even over a wide range of possible energy futures, up to 2020, no energy future was found to bring quantifiable revenues sufficient to cover estimated costs of plant construction. Value streams not quantified in this study may provide a different cost-benefit balance and an economic tipping point for hydro. Future studies are essential in the quest to quantify the full potential value. Additional research should consider the value of services provided by advanced storage hydropower and pumped storage at smaller time steps for integration of variable renewable resources, and should include all possible value streams such as capacity value and portfolio benefits i.e.; reducing cycling on traditional generation.

13 HYDRO ENERGY↗

DOE OSTI2022

A robust statistical analysis of the role of hydropower on the system electricity price and price volatility

Abstract Hydroelectric power (hydropower) is unique in that it can function as both a conventional source of electricity and as backup storage (pumped hydroelectric storage and large reservoir storage) for providing energy in times of high demand on the grid (S. Rehman, L M Al-Hadhrami, and M M Alam), (2015 Renewable and Sustainable Energy Reviews , 44 , 586–98). This study examines the impact of hydropower on system electricity price and price volatility in the region served by the New England Independent System Operator (ISONE) from 2014-2020 (ISONE, ISO New England Web Services API v1.1 .” https://webservices.iso-ne.com/docs/v1.1/ , 2021. Accessed: 2021-01-10). We perform a robust holistic analysis of the mean and quantile effects, as well as the marginal contributing effects of hydropower in the presence of solar and wind resources. First, the price data is adjusted for deterministic temporal trends, correcting for seasonal, weekend, and diurnal effects that may obscure actual representative trends in the data. Using multiple linear regression and quantile regression, we observe that hydropower contributes to a reduction in the system electricity price and price volatility. While hydropower has a weak impact on decreasing price and volatility at the mean, it has greater impact at extreme quantiles (>70th percentile). At these higher percentiles, we find that hydropower provides a stabilizing effect on price volatility in the presence of volatile resources such as wind. We conclude with a discussion of the observed relationship between hydropower and system electricity price and volatility.

13 HYDRO ENERGY↗

DOE OSTI2019

Energy Storage Technology and Cost Characterization Report

This report defines and evaluates cost and performance parameters of six battery energy storage technologies (BESS) (lithium-ion batteries, lead-acid batteries, redox flow batteries, sodium-sulfur batteries, sodium metal halide batteries, and zinc-hybrid cathode batteries) and four non-BESS storage technologies (pumped storage hydropower, flywheels, compressed air energy storage, and ultracapacitors). Data for combustion turbines are also presented. Cost information was procured for the most recent year for which data were available based on an extensive literature review, conversations with vendors and stakeholders, and summaries of actual costs provided from specific projects at sites across the United States. Detailed cost and performance estimates were presented for 2018 and projected out to 2025.

25 ENERGY STORAGE↗

DOE OSTI2019

Energy Storage Technology and Cost Characterization Report

25 ENERGY STORAGE↗

DOE OSTI2022

ORNL Hydropower Cost Database Extract from FERC Form-1

The ORNL FERC Form 1 Hydropower Cost Database Extract is a cleaned and compiled version of the hydropower component of the Federal Energy Regulatory Commission’s (FERC) Electric Utility Annual Report, also known as Form-1. The database includes conventional and pumped storage hydropower plants owned by non-federal major utilities that submitted the Form 1 data from 1994-2020, representing about 22% of existing conventional hydropower capacity and 61% of pumped storage capacity. The database includes the escalation factors and describes the methods used to scale costs to a common data year, as well as tables of identifiers necessary to link the hydropower plants to two other relevant databases, the National Inventory of Dams and the ORNL Existing Hydropower Assets database. This database provides historical capital and operating costs for three schedules/classes defined in Form 1: Large Hydro, Pumped Storage Hydro, and Small Hydro. The Large Hydro and Pumped Storage Hydro data include cost items, such as land, structures, facilities, etc.

13 HYDRO ENERGY↗

DOE OSTI2023

Hydropower Potential at Non-Powered Dams: A Multi-Criteria Decision Analysis Tool based on Grid, Community, Industry, and Environmental Impacts

Non-powered dams (NPDs) are dams that do not include hydraulic turbine (hydropower) equipment. Currently, there are more than 80,000 such dams in the United States, which provide a variety of non-energy benefits, including flood control, water supply, navigation, and recreation. Approximately 500 of these NPDs are identified as having the potential to add hydropower generation (totaling up to a capacity of more than 8200 MW). A large share of investment costs and environmental impacts of dam construction have already been incurred at these NPDs. Hence, adding power to the existing dam structure is hypothesized to be achieved at a lower cost, with less risk, and a shorter timeframe than the development required for new dam construction. The abundance of NPDs, the associated environmental favorability, and cost advantages, combined with the reliability, predictability, and dispatchability of hydropower, make NPDs a strong candidate in the nation’s renewable energy portfolio. To assess the NPD to hydropower conversion potential, in this study, we developed a GIS-based multi-criterial decision analysis tool, which allows users to rank these NPDs based on the grid, community, industry, and environmental impacts (i.e., GCIE impacts). This web-based interactive tool (developed using open-source Python and JavaScript) lets the user choose from a wide range of features to define each of the GCIE impact scores through a user-friendly graphical user interface. These features are related to dam operation, hydropower generation opportunity, power market economy, social vulnerability and risk, proximity to critical infrastructure and energy generating facilities, environmental concerns (air, water, and critical habitat), and exposure to natural hazards. The overall priority score of NPDs is calculated based on user-defined weights for each of the GCIE impact scores. Besides ranking NPDs, the tool can also be used to estimate the energy-storage feasibility (battery, hydrogen, and pump-storage hydropower) at each of the potential sites.

13 HYDRO ENERGY↗

DOE OSTI2022

FAST Equipment Lease with Liberty University, Inc. (Cooperative Research and Development Final Report)

Liberty University, Inc. (Participant) will receive government owned equipment from NREL to evaluate and perform fatigue testing of bladders in use for small scale pumped storage hydropower. NREL is providing technical support to advance Liberty University's pumped storage hydropower (PSH) concept towards commercialization. The concept creates modular upper and lower watertight enclosures (tanks or reservoirs) connected by a series of modular pipe lengths (penstock).

13 HYDRO ENERGY↗

DOE OSTI2021

Isothermal Versus Sensible Cold Storage: A Model-Based Performance Comparison for Pumped Thermal Electricity Storage

Pumped-thermal energy storage (PTES) systems consume and produce electrical energy using thermal storage media as an intermediate stage. PTES lends itself to long-duration energy storage to facilitate high penetration of intermittent electricity generation. This study presents a model-based comparison of two thermal storage types within a PTES system: a conventional, single-phase, stratified water-glycol sensible storage system (SGS), and an ideal isothermal, two-phase heat exchanger that freezes a water reservoir (isothermal heat exchanger (IHEX)). The SGS thermal storage capacity is based on the liquid’s sensible heat change with temperature, whereas the capacity of the IHEX is based on the latent heat of isothermally freezing and melting water. The idealized IHEX modeled here undergoes steady-state melting and freezing (in contrast to transient rates, as observed with ice-on-coil storage). A computational model of a complete PTES system is presented and used to evaluate the PTES system-level performance with each type of cold storage. Compared to SGS-based PTES, under nominal operating conditions, the IHEX-based PTES increased electrical round-trip efficiency from 61% to 82% and increased energy density from 1.13 to 8.09 kWh/m 3 In conclusion, the performance of the PTES configured with IHEX storage was also analyzed under varying operating parameters.

25 ENERGY STORAGE↗

DOE OSTI2013

Review of Existing Hydroelectric Turbine-Governor Simulation Models

This report is the first in a series of documents to be issued in the course of a DOE project titled “Modeling and Analysis of Value of Advanced Pumped Storage Hydropower in the U.S.” We are all intimately familiar with small energy storage devices; we use batteries of various types in our cell phones and other electronic devices as well as the more traditional battery powered devices such as flashlights and radios. However, storing large amounts of energy, on the scale that would be useful for a utility-scale power system, has been a much more challenging task. While several new technologies are being developed, pumped storage hydro is the most widely employed method available for storing large amounts of energy to supply electricity. The basic concept of pumped storage is quite simple: electricity is used to pump water up to an elevated reservoir, where the energy can be stored as potential energy until it is needed; then electricity is generated by letting the water flow back down thorough a turbine/generator. Of course, since there is a loss of energy due to the pumping and generating cycle (as low as 10% for some new plants), there must be an economic incentive for the storage, such as a variation in electricity prices between times of pumping and generating.

Koritarov, Vladimir↗

DOE OSTI2022

Coupled Heat Power Operation of Smart Buildings via Modular Pumped Hydro Storage

In the United States, building sector is responsible for around 40% of total energy consumption and contributes about 40% of carbon emissions since 2012. Within the past several years, various optimization models and control strategies have been studied to improve buildings’ energy efficiency and reduce operational expenses under the constraints of satisfying occupants’ comfort requirements. However, the majority of these studies consider building electricity demand and thermal load being satisfied by unidirectional electricity flow from the power grid or on-site renewable energy generation to electrical and thermal home appliances. Opportunities for leveraging low-grade heat for electricity have largely been overlooked due to impracticality at small scale. In 2016, a modular pumped hydro storage technology was invented in Oak Ridge National Laboratory, named Ground Level Integrated Diverse Energy Storage (GLIDES). In GLIDES, employing high-efficiency hydraulic machinery instead of gas compressor/turbine, liquid is pumped to compress gas inside high-pressure vessel creating head on ground level. This unique design eliminates the geographical limitation associated with the existing state-of-the-art energy storage technologies. It is easy to be scaled for building level, community level, and grid level applications. By using this novel hydro-pneumatic storage technology, opportunities for leveraging low-grade heat in building can be economical. In this research, the potential of utilizing low-grade thermal energy to augment electricity generation of GLIDES is investigated. Since GLIDES relies on gas expansion in the discharge process and the gas temperature drops during this non-isothermal process, available thermal energy, e.g., from thermal storage, combined cooling, heat and power system (CCHP), can be utilized by GLIDES to counter the cooling effect of the expansion process and elevate the gas temperature and pressure and boost the roundtrip efficiency. Here, several groups of comparison experiments have been conducted, and the experimental results show that a maximum 12.9% cost saving could be achieved with unlimited heat source for GLIDES, and a moderate 3.8% cost improvement can be expected when operated coordinately with CCHP and thermal energy storage in a smart building.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2021

Heat Based Power Augmentation for Modular Pumped Hydro Storage in Smart Buildings Operation

In the U.S., building sector is responsible for around 40% of total energy consumption and contributes about 40% of carbon emissions since 2012. Within the past several years, various optimization models and control strategies have been studied to improve buildings energy efficiency and reduce operational expenses under the constraints of satisfying occupants’ comfort requirements. However, the majority of these studies consider building electricity demand and thermal load being satisfied by unidirectional electricity flow from the power grid or on-site renewable energy generation to electrical and thermal home appliances. Opportunities for leveraging low grade heat for electricity have largely been overlooked due to impracticality at small scale. In 2016, a modular pumped hydro storage technology was invented in Oak Ridge National Laboratory, named Ground Level Integrated Diverse Energy Storage (GLIDES). In GLIDES, employing high efficiency hydraulic machinery instead of gas compressor/turbine, liquid is pumped to compress gas inside high-pressure vessel creating head on ground-level. This unique design eliminates the geographical limitation associated with existing state of the art energy storage technologies. It is easy to be scaled for building level, community level and grid level applications. Using this novel hydro-pneumatic storage technology, opportunities for leveraging low-grade heat in building can be economical. In this research, the potential of utilizing low-grade thermal energy to augment electricity generation of GLIDES is investigated. Since GLIDES relies on gas expansion in the discharge process and the gas temperature drops during this non-isothermal process, available thermal energy, e.g. from thermal storage, Combined Cooling, Heat and Power system (CCHP), can be utilized by GLIDES to counter the cooling effect of the expansion process and elevate the gas temperature and pressure and boost the roundtrip efficiency. Several groups of comparison experiments have been conducted and the experimental results show that a maximum 12.9% cost saving could be achieved with unlimited heat source for GLIDES, and a moderate 3.8% cost improvement can be expected when operated coordinately with CCHP and thermal energy storage in a smart building.

Chen, Yang↗

DOE OSTI2020

BI-LEVEL OPTIMIZATION FOR ELECTRICITY TRANSACTION IN SMART COMMUNITY WITH MODULAR PUMP HYDRO STORAGE

Grid integration of the increasing distributed energy resources could be challenging in terms of new infrastructure investment, power grid stability, etc. To resolve more renewables locally and reduce the need for extensive electricity transmission, a community energy transaction market is assumed with market operator as the leader whose responsibility is to generate local energy prices and clear the energy transaction payment among the prosumers (followers). The leader and multi-followers have competitive objectives of revenue maximization and operational cost minimization. This non-cooperative leader-follower (Stackelberg) game is formulated using a bi-level optimization framework, where a novel modular pump hydro storage technology (GLIDES system) is set as an upper level market operator, and the lower level prosumers are nearby commercial buildings. The best responses of the lower level model could be derived by necessary optimality conditions, and thus the bi-level model could be transformed into single level optimization model via replacing the lower level model by its Karush-Kuhn-Tucker (KKT) necessary conditions. Several experiments have been designed to compare the local energy transaction behavior and profit distribution with the different demand response levels and different local price structures. The experimental results indicate that the lower level prosumers could benefit the most when local buying and selling prices are equal, while maximum revenue potential for the upper level agent could be reached with non-equal trading prices.

Chen, Yang↗

DOE OSTI2023

Low‐cost, Long Duration Electrical Energy Storage Using a CO 2 ‐based Pumped Thermal Energy Storage

The increasing deployment of non‐dispatchable, intermittent renewable energy generation sources to address climate change is placing pressure upon electrical grids’ ability to match supply with demand. The need to deploy large quantities of long duration energy storage assets is rapidly approaching, and innovative methods of energy storage that are low cost, efficient, safe and environmentally benign are needed urgently. CO 2 ‐based Pumped Thermal Energy Storage (PTES) is a low cost, efficient and environmentally safe energy storage technology. PTES uses an electrically‐driven CO 2 heat pump to charge thermal reservoirs that are later used as resources to generate electricity using a CO 2 heat engine. In this program, Echogen and collaborators refined the design of a utility‐scale CO 2 PTES system and demonstrated key technologies that will be required for successful commercial development in a laboratory‐scale system. Component and system‐level performance was evaluated over multiple charge/discharge cycles, with favorable results. Echogen is continuing to develop and commercialize this technology at utility scale.

25 ENERGY STORAGE↗

DOE OSTI2023

Hydropower Value Drivers

Conventional hydro resources generate the majority of their value by providing energy under most conditions, but the relative fraction of value generated by providing ancillary services and capacity increases with increasing penetration of resources with zero fuel costs. Pumped storage hydropower resources generate the majority of their value by providing capacity under most conditions, but the relative fraction of value generated by providing energy increases with increasing penetration of resources with zero fuel costs. The total value of conventional hydropower generally decreases in systems with increasing penetration of resources with zero fuel costs; this is largely due to the associated decrease in average energy prices. The total value of pumped storage generally increases in systems with increasing penetration of resources with zero fuel costs, largely due to opportunities to operate in pumping mode when energy prices are low or even negative. Energy storage representation must be enhanced to ensure that models accurately capture system value streams for these resources. Current power system models have a limited ability to capture the price dynamics of ancillary services, and it is still challenging to assess the role and magnitude of ancillary service value streams in future systems. Power systems are currently in a state of rapid and dramatic evolution due to a number of different factors, including the increasing penetration of variable renewable energy (VRE) sources, such as wind and solar, and battery energy storage systems (BESS). This evolution will change the way power systems are fundamentally planned and operated. Some of these changes may be incremental, while others may be more significant, but the result will likely be parallel evolution in the definition and requirement of different grid services and therefore a subsequent shift in their relative values. This report presents a framework developed to identify such system value drivers and quantify their relative impact on several different value streams, with a specific focus on implications for conventional hydropower and pumped storage hydropower (PSH) resources. This value drivers framework (VDF) encompasses five core analytical steps: 1. Identify potential drivers and develop scenarios, 2. Execute production cost models, 3. Calibrate prices, 4. Optimize hydropower operations, and 5. Quantify value drivers.

13 HYDRO ENERGY↗

DOE OSTI2021

Optimal scheduling for profit maximization of energy storage merchants considering market impact based on dynamic programming

This paper analyzes how electricity merchants' market impact affects merchants' profit. Energy storage has long been studied for its role in maximizing profit, and merchant decisions are assumed to have no impact on market prices. However, the trading decisions of large-scale energy storage merchants (e.g., pumped storage hydro) will affect the market prices. This paper employs dynamic programming theory to investigate merchants' optimal economic dispatch considering the market impact and physical characteristics of storage systems. Our findings show that the State-of-Charge (SOC) based analytical solution significantly facilitates energy storage merchants' decision-making. The SOC range is segmented into three regions by two optimal SOC reference points, which depend on the available energy in storage, given prices, and market impact. By comparing the current storage SOC with the reference points, the merchant can get the corresponding optimal actions. We analytically show that if the merchant neglects the market impact on the power market, she will exaggerate her expected profit when the price-taker and price-maker merchants have the same generating and pumping upper limits offered to Independent System Operators (ISOs). Furthermore, the profit-maximizing merchant must, therefore, assay to balance the trade-off correctly between the intensity of market impact and the dispatched power. Our findings are verified by numerical simulation, and results demonstrate the ramifications for electricity merchants in energy arbitrage decisions.

25 ENERGY STORAGE↗