Cloud Electricity Storage for Multi-Service Battery Operation: Case of RTE

38 Pages Posted: 18 May 2021 Last revised: 16 Sep 2021

See all articles by Mohammad Rasouli

Mohammad Rasouli

Stanford University

Tao Sun

Stanford University - Department of Civil and Environmental Engineering

Camille Pache

French transmission system operator R ́eseau de Transport d’Electricit ́e (RTE)

Patrick Panciatici

French transmission system operator R ́eseau de Transport d’Electricit ́e (RTE)

Jean Maeght

French transmission system operator R ́eseau de Transport d’Electricit ́e (RTE)

Ramesh Johari

Stanford University

Ram Rajagopal

Stanford University

Date Written: May 18, 2021

Abstract

Problem definition: We study a cloud storage operator that provides shared storage service for electricity end-users using the residual part of a multi-service grid-scale battery primarily used for high-priority grid services. We design an optimal product with regard to pricing and customer portfolio. Academic/practical relevance: A framework and solution approach for assessing and operating such multi-service battery operations with stochastic services and different priority levels is an open problem. Methodology: We model the problem as a two-stage stochastic optimization between high-priority stochastic grid services and low-priority cloud storage for stochastic end-users. We also propose operational metrics of multiplexing gain and probability of blocking to assess the operation of the multi-service multi-user battery. To address the computational challenge of solving the stochastic optimization with a large number of end-users, we propose effective capacity as a convex approximation that allows an analytical solution. We then provide an empirical analysis based on real grid congestion data from RTE France and a large dataset of end-users' electricity consumption in California. Results: Our empirical analysis shows (i) our proposed effective capacity is a close approximation, (ii) battery operation and profit are sensitive to the cost of external resources, number of end-users, and the leasing price of the battery, and (iii) with only a slight discount of the leasing price (~1%), the profit of the third party from a stochastic residual battery can be the same as that from a deterministic one. Managerial implications: Cloud storage as a low-priority service can profitably exist alongside other high-priority battery services, making integration of more storage in the grid economically viable and allowing larger intermittent renewables, a key path towards reduced carbon emissions.

Keywords: Large-scale batteries, multi-service multi-user battery operation, grid congestion management, cloud electricity storage

Suggested Citation

Rasouli, Mohammad and Sun, Tao and Pache, Camille and Panciatici, Patrick and Maeght, Jean and Johari, Ramesh and Rajagopal, Ram, Cloud Electricity Storage for Multi-Service Battery Operation: Case of RTE (May 18, 2021). Available at SSRN: https://ssrn.com/abstract=3848288 or http://dx.doi.org/10.2139/ssrn.3848288

Mohammad Rasouli (Contact Author)

Stanford University ( email )

Stanford, CA 94305
United States

Tao Sun

Stanford University - Department of Civil and Environmental Engineering ( email )

Stanford, CA 94305
United States

Camille Pache

French transmission system operator R ́eseau de Transport d’Electricit ́e (RTE) ( email )

C Place du Dˆome
Puteaux, 92800
France

Patrick Panciatici

French transmission system operator R ́eseau de Transport d’Electricit ́e (RTE)

C Place du Dˆome
Puteaux, 92800
France

Jean Maeght

French transmission system operator R ́eseau de Transport d’Electricit ́e (RTE) ( email )

C Place du Dˆome
Puteaux, 92800
France

Ramesh Johari

Stanford University ( email )

473 Via Ortega
Stanford, CA 94305-9025
United States

Ram Rajagopal

Stanford University

Stanford, CA 94305
United States

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