An integrated framework for assessing the operational value of energy storage in the power system operation including real-time dispatch

This paper presents an integrated multi-level optimization framework to assess the operational value of energy storage in the power system operation. A rolling solution approach is formulated, which coordinates the Day-Ahead Market, the Integrated Scheduling Process and the Real-Time Market over a mid-term horizon and is accompanied by the integration of fine time resolution that allows for more accurate representation of market fluctuations and energy storage dynamics. The incorporation of progressively decreasing forecast errors in the modeling framework as well as the enhanced modeling of energy storage operation that allows for the frequent re-optimization of storage levels based on updated information allow for the realistic evaluation of the energy storage value, particularly in modern RES-dominated power systems. Simulations of the Greek power system operation for the year 2025 reveal that the addition of up to 780 MW of new closed-loop energy storage facilities increases the system value of energy storage by 17.33–26.75 k€/MW and decreases its market value by 2.37–11.43 k€/MW due to real-time uncertainties, as compared to a pure day-ahead market modeling framework. The proposed approach demonstrates the great potential of energy storage to enhance flexibility, reduce system costs, and effectively address risks arisen by the exposure to real-time market uncertainties. • Integrated framework to assess the operational value of energy storage by mid-term simulation • Modeling of load demand and RES generation stochasticity • Multiple scenarios are examined to model power system and market uncertainties. • Computationally intensive simulation runs addressed by parallel HPC. • A real-world case study illustrates the applicability of the proposed model.