Product competition strategy of harbor energy storage project

Can energy storage be a strategic investment under competition?

These market dynamics serve as a motivation for this study to understand strategic investments in energy storage under competition, taking into account storage impact on the market price. Our work uses energy arbitrage as a test case with the intent to explore additional services in the future.

What are the inputs in a storage competition model?

The inputs are the investors’ storage parameters as well as the market price function that we will characterize in Section 3. The key process is computing the Nash equilibrium, which will be introduced in Section 4. Fig. 2. Framework of the storage competition model. 3. Market price function

Does market competition affect storage investment?

Cournot competition is widely used in electricity markets to study suppliers’ strategic behaviors , , , , , , , . However, none of these works studied market competition in storage investment.

Will energy-storage companies win big?

As the market evolves, we expect a relatively small set of energy-storage companies to win big, taking share away from less cost-effective rivals. In this article, we look at how the cost profile of energy-storage systems is changing and what companies in the sector can do to boost their chances of success.

What is a storage competition game model?

Storage competition game model Based on the profits and decision sets of the investors, we formulate the storage competition game G among investors to model their strategic interactions. In the game theory, one key concept is the Nash equilibrium.

Do storage investors compete in deregulated electricity markets?

In practice, storage investors usually compete in deregulated electricity markets in a non-cooperative manner, a setting that is more challenging to model and analyze. Qin et al. studied strategic storage investment among non-cooperative investors. This work is most closely related to ours. Our work differs from in several crucial ways.