FEEM-IEFE Joint Seminar on “Market design for energy storage systems”
12:30 - 14:00
Most of the studies that can be found in the literature analyze storage from a user’s point of view (the kind of service storage provides). Moreover the analysis of such literature suggests different approaches providing a framework for the various services which could be provided by storage technologies, mostly batteries. However, from a market design point of view, it is important to analyze the question in terms of who offers storage services. This will be the aim of this lecture.
First, we may consider that there are two relevant “arenas” for storage services:
– Time shift – Buy and sell energy in different periods (including energy related to ancillary services)
– Locational shift – Avoid the need to transport energy from one point to another, i.e. the need to use transmission and/or distribution networks
Consequently, this involves two kinds of regulatory challenges, because storage compete with different types of services:
– Wholesale market design – Flexibility services can be sold in “competitive” wholesale markets (energy, ancillary services, etc.); hence, markets rules should allow storage services to compete in a non-discriminatory manner with other services (e.g. utility-scale storage vs. CCGTs).
– Regulation of energy networks – Storage services may avoid the use of “regulated” networks; consequently, network rules should allow them to compete in a technologically neutral manner (e.g. utility-scale storage vs. transmission upgrades).
Using this framework, we will compare regulatory experiences in the US and Germany, in order to identify general trade-offs for market designs.
This seminar has been jointly organized by FEEM and IEFE, Bocconi University.