- Conference Paper
Energy storage technologies have been established as being extremely versatile, with the potential to facilitate energy arbitrage, frequency regulation, and increased self-consumption, among other services. Energy storage may also serve as a back-up source of energy in the event of a sudden power loss; however, unlike other services, the value of back-up energy provided by energy storage has not been fully quantified. The value of energy reserves presented by energy storage may be significant for users with high value of continuous power supply and may factor into the investment and decision-making process. Here, we present a methodology for a private energy storage investor by accounting for the change in expected cost of outage, as presented by the varying levels of stored energy, in the context of a mathematical optimization problem. In a case study of an Australian aluminum smelter and a vanadium redox flow battery, we find that considering the expected benefit of storage is of greater importance to operating strategy than in determining the optimal storage capacity, with impact increasing as the network failure rate decreases. These preliminary findings suggest that considering the value of energy storage in mitigating the costs of power outage may be non-negligible for other users, as well. Show more
Book titleProceedings of the 30th European Safety and Reliability Conference and the 15th Probabilistic Safety Assessment and Managaement Conference
Pages / Article No.
PublisherResearch Publishing Services
SubjectEnergy storage; Optimization; Customer damage function; Insurance; Investment decision; Business interruption; Aluminum; Power loss; Power systems; Energy transition
Organisational unit09452 - Sansavini, Giovanni / Sansavini, Giovanni
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