What is Peak-Valley price arbitrage?

1. Peak-Valley Price Arbitrage Peak-valley electricity price differentials remain the core revenue driver for industrial energy storage systems. By charging during off-peak periods (low rates) and discharging during peak hours (high rates), businesses achieve direct cost savings. Key Considerations:

Is a retrofitted energy storage system profitable for Energy Arbitrage?

Optimising the initial state of charge factor improves arbitrage profitability by 16 %. The retrofitting scheme is profitable when the peak-valley tariff gap is >114 USD/MWh. The retrofitted energy storage system is more cost-effective than batteries for energy arbitrage.

Are energy storage systems more cost-effective than batteries for Energy Arbitrage?

The retrofitted energy storage system is more cost-effective than batteries for energy arbitrage. In the context of global decarbonisation, retrofitting existing coal-fired power plants (CFPPs) is an essential pathway to achieving sustainable transition of power systems.

Is energy arbitrage profitability a sizing and scheduling Co-Optimisation model?

It proposes a sizing and scheduling co-optimisation model to investigate the energy arbitrage profitability of such systems. The model is solved by an efficient heuristic algorithm coupled with mathematical programming.

What is the optimal SoC factor for Energy Arbitrage?

With the optimal value of 24 %, the remaining capacity and operational flexibility of the ESS can be properly balanced, so as to achieve the full operational cycle of energy arbitrage and the highest profit. Compared to the default value as in previous work (50 %), the optimal initial SOC factor increases the annual arbitrage profit by 16 %.