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The profitability of energy storage in European electricity markets. ESRI WP605, December 2018

Spodniak, Petr and Bertsch, Valentin and Devine, Mel (2018) The profitability of energy storage in European electricity markets. ESRI WP605, December 2018. [Working Paper]

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    In this work, we study the profitability of energy storage operated in the Nordic, German, and UK electricity day-ahead markets during 2006-2016. We build a linear optimization model which maximizes profits from arbitraging hourly prices and use the model output of profits and storage cycles in further econometric analyses. We quantify and disentangle the effects of electricity spot price volatility, electricity demand, carbon emission price, wind and solar generation, and spread between gas and coal prices on profits and operation of 1-13MWh energy storages. Among others we find that solar generation is associated with lower profits but higher operating frequency of energy storages in Germany. Wind power generation is associated with positive effects on profits in the UK and Germany. vRES does not affect profits or operation of the Nordic energy storages.

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    Item Type: Working Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > energy policy (Including international arena)
    Countries > Ireland
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Economic and Social Research Institute (ESRI), Dublin > ESRI Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 13 Dec 2019 22:42
    Number of Pages: 27
    Last Modified: 13 Dec 2019 22:42

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