An economic analysis model for the energy storage systems in a deregulated market

Recent developments and advances in energy storage technologies are making the application of energy storage technologies a viable solution to power applications. The energy storage systems can store energy previously, and then release it in the proper time. Due to their flexibility, it is suitable to apply this technology to deregulated power markets. Therefore, this paper will build the economic analysis model for the energy storage systems in a deregulated power market. The costs including installing energy storage systems and operation & maintenance expense and the revenues containing energy price arbitrage, reducing transmission access cost, and deferring facility investment are considered in this paper. All these factors are evaluated by present worth value. Due to complexity of this problem, this paper proposes a method combining the genetic algorithm with linear program (GALP) to determine the best capacity and operating status of the energy storage system.