Market Operation of Energy Storage System in Smart Grid: A Review

As a flexible resource, energy storage plays an increasingly significant role in stabilizing and supporting the power system, while providing auxiliary services. Still, the current high demand for energy storage contrasts with the fuzzy lack of market-oriented mechanisms for energy storage, the principle of market-oriented operation has not been embodied, and there is no unified and systematic analytical framework for the business model. However, the dispatch management model of energy storage in actual power system operation is not clear. Still, the specific scheduling process and energy storage strategy on the source-load-network side could be more specific, and there needs to be a greater understanding of the collaborative scheduling process of the multilevel scheduling center. On this basis, this paper reviews the energy storage operation model and market-based incentive mechanism, For different functional types and installation locations of energy storage within the power system, the operational models and existing policies for energy storage participation in the market that are adapted to multiple operating states are summarized. From the point of view of the actual scheduling and operation management of energy storage in China, an energy storage regulation and operation management model based on “national, provincial, and local” multilevel coordination is proposed, as well as key technologies in the interactive scenarios of source-load, network and storage. © 2024, Tech Science Press. All rights reserved.