Optimal operation and sizing of pumped thermal energy storage for net benefits maximization

Abstract

Abstract Current trends in the modern grid are leading to the development and deployment of energy storage to help integrate increasing variable renewable energy sources into the grid. This paper studies a pumped thermal energy storage (PTES) system for multiple grid services including energy arbitrage, frequency regulation, spinning and non‐spinning reserve, and resource adequacy. Optimal dispatch methods are proposed for individual services as well as value stacking from multiple services to maximize the economic benefits. Assessment results demonstrate the superiority of value stacking. Specifically, the study shows the maximum revenue from an individual grid service with a 30‐MWh PTES system was $522,520, while the value stacking could increase the benefits to $678,477. In addition, sensitivity analyses were conducted to explore the cost‐effectiveness of a PTES system with different combinations of power transfer limits and energy capacity. It was found that the power transfer limit had a greater impact than the energy capacity on the benefits. The proposed method could help determine the optimal duration of a future PTES system.