| Energy storage has been one of the central focuses of research in regards to updating the electric grid and making renewable energy generation possible. There are many applications of energy storage within new pricing structures (such as real-time pricing) where the use of smart meters makes the current price of electricity available to the consumer. To take advantage of this information, energy storage systems (ESS) have been proposed for the application of energy arbitrage; buying electricity at a low price and selling it at a high price. In order to do this, a charge/discharge scheduling technique must be used to obtain the most benefit from the ESS. This thesis proposes to use the optimal daily threshold method for charge/discharge scheduling. The method is tested with three energy storage technologies; namely, Vanadium redox-flow batteries (VRB), sodium sulfur batteries (NaS), and lithium-ion batteries (Li-Ion). The economic viability of these technologies in an arbitrage application is assessed using simulation results and performing an economic analysis making use of electricity prices from ISO New England from 2006 to 2010. Recommendations are made for the technology with the most potential for a successful implementation for arbitrage as well as for government incentives in order to increase the profit available from this ESS application to accelerate adoption of large-scale energy storage that can improve both quality and reliability of the electric grid but also reduce capital costs. |
