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Economic and operation benefits of energy storage — A case study at MISO

Recent changes in the power industry, such as increased renewable generation, higher costs for serving peak demands, capital investments in grid infrastructure for reliability and efficiency, and smart grid initiatives lead to an increased interest in energy storage technologies. Energy storage will bring various economic and operational benefits to the power system. This paper evaluates the potential values that Compressed Air Energy Storage (CAES) can bring to MISO, and the revenue/cost that CAES will get from both energy and ancillary service market by using production cost simulation software (PLEXOS).