Energy Storage as a Service: Optimal sizing for Transmission Congestion Relief

Abstract In this paper, we propose a risk-based optimal sizing model for Storage as Transmission Alternative (SATA) intended for Transmission Congestion Relief (TCR) services. The storage system is sized from the perspective of the regulator/network operator with the ultimate goal of minimizing the cost of TCR to the ratepayers. The concept of Energy Storage as a Service (ESaaS) is considered when developing the models assuming that SATA’s idle capacity is rented out for a fee to third parties who would participate in energy and ancillary services markets. The fees collected through market participation services are assumed to be credited back to the ratepayers to offset the overall costs of removing network congestion. The presented simulation results provide insights into the financial benefits and risks associated with allowing SATA to share its excess capacity for additional revenues.