New electricity generation technologies are often assessed using simple metrics such as average return, break-even energy prices or levelised cost of electricity. These simple metrics do not always capture the full economic value of a technology, particularly those that can react quickly and efficiently to changes in demand. In a wholesale spot market, opportunities exist to capture greater revenues, as currently achieved by peak power plants. This study demonstrates the use of two complementary methods to determine how storage should be operated to maximise revenue. First, the authors formulate and solve the problem as a linear program. The results indicate that there are distinct control modes. They then use Pontryagin's principle to confirm that the optimal operating strategy has three distinct control modes: (i) store all collected power, without generating, (ii) generate using collected power only and (iii) generate at maximum capacity using both collected and stored power. The mode that should be used at any instant depends only on the spot price of electricity relative to a pair of critical prices. These critical prices depend on the total energy that will be collected and the turnaround efficiency of the storage system.

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Controlling stored energy in a concentrating solar thermal power plant to maximise revenue

References

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