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Comparative Hourly Scheduling of Centralized and Distributed Storage in Day-Ahead Markets

Electric energy storage (EES) installations in power systems are migrating from large centralized systems to more distributed installations for microgrid applications. This trend signifies modular EES installations for the local control of buildings and processes. A centralized EES system is often dispatched by grid operators for increasing the overall efficiency and enhancing the security of power systems. The distributed EES (DEES) is locally managed by aggregators to maximize the local impact of EES, before the aggregators' adjusted load profiles are submitted to grid operators for the day-ahead scheduling. In this paper, we present and analyze two models for the hourly scheduling of centralized and distributed EES systems in day-ahead electricity markets. The proposed models take into account specific characteristics and intertemporal constraints of EES systems in transmission-constrained power systems. The proposed models are applied to a 6-bus system and the IEEE-RTS, and the results are presented to compare impacts of utilizing the two EES models on system operations and quantify operation benefits of EES in power systems.