chardz

Relatively uncongested…for now

I mean, I guess I disagree that you need anything close to a perfect model. You will get many of the benefits of the correct solution by using linearized power flow with nodal pricing and explicitly modeling transmission constraints (and by extension, redispatch). Afaik, Germany doesn’t do this, but as you had described earlier, redispatch costs are physical in nature and obviously still exist, they just aren’t reflected in prices. This is very dumb.

Suppose a new generator wants to know which is the best node to interconnect to. This should be obvious from nodal pricing, as you would simply check the node that has the highest INC redispatch/lowest congestion costs (the nodes in the south of Germany in your example). Similarly, the worst node to connect to will be the one with the highest DEC redispatch/highest congestion costs (the North). Instead, in the current german system, I would think you would need to do some contrived thing of figuring out which generators are getting the highest uplift payments, but this would be very imperfect as you would not know how sensitive a different node would be to the system redispatch (not to mention, this is assuming this information is even readily published).

There’s really no excuse to not adopt nodal pricing over whatever exists for a centrally planned grid operator. I can only really imagine it’s a political issue.

Not pricing transmission in the price of EU power likely is more of a market design issue rather than a technical one given that the U.S markets have been doing this since they liberalized 30 years ago (though yes, everything will be priced according to linearized power flow in order to make things feasible to solve). Wonder if it’s more of a political question in the EU with how to handle cross border flows (even U.S markets have/have had issues with modeling this, see PJM/MISO seams modeling)

I'm afraid I'm not too familiar with BESS in particular, and the people I spoke to are probably not too keen on sharing much (which is generally true of those who work in U.S markets). Unfortunately it's all very opaque.

I'd be happy to provide you the names of the firms I spoke to over email, if that would be of use!

On top of what others have mentioned, this paper also sidesteps forecasting electricity prices, which is already a very complicated problem (particularly in U.S markets where we have zonal pricing) needed to build profitable battery systems that actually operate on the grid.

I've had a few chats with some folks working on battery startups, and I think the more conventional approach is to forecast prices + run an optimization to find optimal storage decisions. You could measure the system's performance by looking at how well the algorithm does when it has perfect information about prices (obviously, when you have perfect information about prices it is trivial to optimize the battery).

Would recommend an air fryer for this; They are basically made to reheat things with oil on them already.

Are you sure you know what deflation is?

Being in SCED just means that the resource bid into the real time energy market (which clears every 5 mins), it does not necessarily mean that the resource is cheap to dispatch. The confusion here might be caused by the differences of the ancillary market (PRC) and the energy market (SCED).

Your second paragraph may be answered by this: https://www.ercot.com/gridmktinfo/dashboards/gridconditions. PRC units are available in real time, immediately on request.

it is zoomer language for “very skilled”.

You can certainly alleviate the disadvantage of being slower though - and that’s exactly what literature in batch trading argues.