A methodology to assess the economic impact of power storage technologies

Research output: Contribution to journalArticle

Abstract

We present a methodology for assessing the economic impact of power storage technologies. The methodology is founded on classical approaches to the optimal stopping of stochastic processes but involves an innovation that circumvents the need to, ex ante, identify the form of a driving process and works directly on observed data, avoiding model risks. Power storage is regarded as a complement to the intermittent output of renewable energy generators and is therefore important in contributing to the reduction of carbon intensive power generation. Our aim is to present a methodology suitable for use by policy makers that is simple to maintain, adaptable to different technologies and is easy to interpret. The methodology has benefits over current techniques and is able to value, by identifying a viable optimal operational strategy, a conceived storage facility based on compressed air technology operating in the UK.
LanguageEnglish
Article number303
JournalPhilosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences
Volume375
Issue number2100
Early online date10 Jul 2017
DOIs
Publication statusPublished - 13 Aug 2017

Fingerprint

Economics
Technology
Renewable Energy
Compressed Air
Stochastic Processes
Administrative Personnel
Carbon

Keywords

  • optima stopping
  • power storage
  • Policy analysis

Cite this

@article{1077ab5edaee4933aad5954c14a728e4,
title = "A methodology to assess the economic impact of power storage technologies",
abstract = "We present a methodology for assessing the economic impact of power storage technologies. The methodology is founded on classical approaches to the optimal stopping of stochastic processes but involves an innovation that circumvents the need to, ex ante, identify the form of a driving process and works directly on observed data, avoiding model risks. Power storage is regarded as a complement to the intermittent output of renewable energy generators and is therefore important in contributing to the reduction of carbon intensive power generation. Our aim is to present a methodology suitable for use by policy makers that is simple to maintain, adaptable to different technologies and is easy to interpret. The methodology has benefits over current techniques and is able to value, by identifying a viable optimal operational strategy, a conceived storage facility based on compressed air technology operating in the UK.",
keywords = "optima stopping, power storage, Policy analysis",
author = "Timothy Johnson and {El Ghandour}, Laila",
year = "2017",
month = "8",
day = "13",
doi = "10.1098/rsta.2016.0303",
language = "English",
volume = "375",
journal = "Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences",
issn = "1364-503X",
publisher = "Royal Society of London",
number = "2100",

}

TY - JOUR

T1 - A methodology to assess the economic impact of power storage technologies

AU - Johnson, Timothy

AU - El Ghandour, Laila

PY - 2017/8/13

Y1 - 2017/8/13

N2 - We present a methodology for assessing the economic impact of power storage technologies. The methodology is founded on classical approaches to the optimal stopping of stochastic processes but involves an innovation that circumvents the need to, ex ante, identify the form of a driving process and works directly on observed data, avoiding model risks. Power storage is regarded as a complement to the intermittent output of renewable energy generators and is therefore important in contributing to the reduction of carbon intensive power generation. Our aim is to present a methodology suitable for use by policy makers that is simple to maintain, adaptable to different technologies and is easy to interpret. The methodology has benefits over current techniques and is able to value, by identifying a viable optimal operational strategy, a conceived storage facility based on compressed air technology operating in the UK.

AB - We present a methodology for assessing the economic impact of power storage technologies. The methodology is founded on classical approaches to the optimal stopping of stochastic processes but involves an innovation that circumvents the need to, ex ante, identify the form of a driving process and works directly on observed data, avoiding model risks. Power storage is regarded as a complement to the intermittent output of renewable energy generators and is therefore important in contributing to the reduction of carbon intensive power generation. Our aim is to present a methodology suitable for use by policy makers that is simple to maintain, adaptable to different technologies and is easy to interpret. The methodology has benefits over current techniques and is able to value, by identifying a viable optimal operational strategy, a conceived storage facility based on compressed air technology operating in the UK.

KW - optima stopping

KW - power storage

KW - Policy analysis

U2 - 10.1098/rsta.2016.0303

DO - 10.1098/rsta.2016.0303

M3 - Article

VL - 375

JO - Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences

T2 - Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences

JF - Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences

SN - 1364-503X

IS - 2100

M1 - 303

ER -