Methodology for Capacity Credit Evaluation of Physical and Virtual Energy Storage in Decarbonized Power System

TL;DR

This paper introduces a comprehensive framework for evaluating the capacity credit of energy storage and virtual energy storage, considering market and human behaviors, to improve system adequacy assessments in decarbonized power systems.

Contribution

It proposes a novel two-stage dispatch method incorporating uncertainties and human factors, along with new indices for realistic capacity credit evaluation of ES and VES.

Findings

Overlooking uncertainties can lead to 10%-70% overestimation of capacity credit.

The proposed method provides more credible and accurate capacity credit assessments.

Key factors influencing storage contribution are identified and analyzed.

Abstract

Energy storage (ES) and virtual energy storage (VES) are key components to realizing power system decarbonization. Although ES and VES have been proven to deliver various types of grid services, little work has so far provided a systematical framework for quantifying their adequacy contribution and credible capacity value while incorporating human and market behavior. Therefore, this manuscript proposed a novel evaluation framework to evaluate the capacity credit (CC) of ES and VES. To address the system capacity inadequacy and market behavior of storage, a two-stage coordinated dispatch is proposed to achieve the trade-off between day-ahead self-energy management of resources and efficient adjustment to real-time failures. And we further modeled the human behavior with storage operations and incorporate two types of decision-independent uncertainties (DIUs) (operate state and self-consumption) and one type of decision-dependent uncertainty (DDUs) (available capacity) into the proposed dispatch. Furthermore, novel reliability and CC indices (e.g., equivalent physical storage capacity (EPSC)) are introduced to evaluate the practical and theoretical adequacy contribution of ES and VES, as well as the ability to displace generation and physical storage while maintaining equivalent system adequacy. Exhaustive case studies based on the IEEE RTS-79 system and real-world data verify the significant consequence (10%-70% overestimated CC) of overlooking DIUs and DDUs in the previous works, while the proposed method outperforms other and can generate a credible and realistic result. Finally, we investigate key factors affecting the adequacy contribution of ES and VES, and reasonable suggestions are provided for better flexibility utilization of ES and VES in decarbonized power system.