Analytical Derivation-based Operational Value Analysis of Energy Storage

Economic dispatch of power systems considering ES can effectively reduce energy waste and improve system resilience. Existing ES dispatch values often use numerical analysis instead of theoretically deriving the value of ES dispatch, resulting in incomplete relevant decisions. This paper uses a multi-parametric programming-based ES operation value analysis method to analytically analyze the operational value of ES. Aiming at the key defects in existing ES valuation methods, an economic dispatch model considering ES is first established. The Lagrangian function of ES parameters is derived through KKT conditions to establish a clear relationship between ES parameters and the price formation mechanism. Additionally, the ES nodal price relationship is structured and decomposed into three quantifiable components. This method overcomes the limitations of traditional simulation-based methods by analytically deriving the impacts of ES on nodal prices. A case study using the IEEE-30 bus system and real renewable energy generation data shows that our analytical characterization function provides a constant nodal price relationship under different value surfaces, providing enhanced ES operational decision support for dispatchers. This framework contributes to the theoretical understanding and practical implementation of ES valuation in the power market.