IEEE Power & Energy Magazine - September/October 2017 - 74

and reserve services, with associated yearly gross revenues
of US$1 million and US$0.5 million, respectively (the former refers to the revenue for buying energy during low-cost
hours and selling when energy prices are higher; the latter
refers to the revenue for allowing a conventional generator
to increase its power outputs because it does not need to
hold reserve capacity).
This situation is illustrated in Figure 5, where we have
estimated that the overall value of this storage plant is equal
to US$2.5 million. It is important to mention that under current practice in Chile-where battery plants are installed for
the provision of reserve only (ignoring further applications
of storage plants)-the expected value of the same storage
asset would be approximately US$1.1 million per year (in
contrast to the US$2.5 million calculated above), demonstrating that locating a battery to cooptimize its different services can significantly increase its revenue.
The Chilean power system currently includes 52 MW of
installed capacity in battery storage plants, deployed entirely
by market participants to provide reserve services (an idea
pioneered by the AES Corporation)-even though the Chilean power sector does not feature a reserve market. The main
idea is that new battery plants can replace the idle reserve
capacity booked in conventional generators, which were
forced to provide the service without appropriate remuneration. Thus, with a battery storage plant in place, a conventional generator can maximize its output while the reserve

plants: the lag between the investment decision and the commissioning time. Lag time provides opportunities for investment coordination, especially in the face of future uncertainty
and transmission congestion. In this context, an optimal portfolio of storage plants will balance present and future investment decisions in such a way that strategic (or, using stochastic
programming terminology, "here-and-now") investments in
current traditional infrastructure (such as hydropower plants
and transmission lines) are complemented later on through
"wait-and-see" investments in battery storage plants that can be
rapidly delivered, thus efficiently adapting the overall investment plan to the unfolding future.
Additionally, battery storage plants can be easily transported to a different location depending on system flexibility needs, increasing the cost-efficiency of the previously
discussed adaptive approach. In Chile, for instance, there is
currently a significant amount of renewables curtailment
in the area of Diego de Almagro (see the location in Figure 1) due to delays in the delivery of the main network
infrastructure; these can be mitigated by the installation of
battery storage plants (which, after the main network infrastructure is finally delivered, may be moved to a different
location to maximize their value). We have estimated that
a 20-MW/80-MWh battery in that area will reduce curtailments by about 2%, increasing the yearly gross revenue
of renewable generation by US$1 million (from US$13 to
14 million). Moreover, the battery can provide further energy

Without Battery

Diego de Almagro
1,238 GWh
(88%)

165 GWh
(12%)

Main
System

1,238 GWh
(88%)

Renewables Gross Revenue: US$13 Million/yr

(a)

With Battery

Battery
Energy Market Gross Revenue: US$1.0 Million/yr
Reserve Gross Revenue: US$0.5 Million/yr

139 GWh
(10%)

1,263 GWh
(90%)
Main
System

1,263 GWh
(90%)

Renewables Gross Revenue: US$14 Million/Year (US$1 Million/Year increase)
Value of Storage Plant: US$2.5 Million/yr

(b)

figure 5. The situation (a) without an energy storage plant and (b) with an energy storage plant that provides multiple services.
74	

ieee power & energy magazine	

september/october 2017



Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - September/October 2017

IEEE Power & Energy Magazine - September/October 2017 - Cover1
IEEE Power & Energy Magazine - September/October 2017 - Cover2
IEEE Power & Energy Magazine - September/October 2017 - 1
IEEE Power & Energy Magazine - September/October 2017 - 2
IEEE Power & Energy Magazine - September/October 2017 - 3
IEEE Power & Energy Magazine - September/October 2017 - 4
IEEE Power & Energy Magazine - September/October 2017 - 5
IEEE Power & Energy Magazine - September/October 2017 - 6
IEEE Power & Energy Magazine - September/October 2017 - 7
IEEE Power & Energy Magazine - September/October 2017 - 8
IEEE Power & Energy Magazine - September/October 2017 - 9
IEEE Power & Energy Magazine - September/October 2017 - 10
IEEE Power & Energy Magazine - September/October 2017 - 11
IEEE Power & Energy Magazine - September/October 2017 - 12
IEEE Power & Energy Magazine - September/October 2017 - 13
IEEE Power & Energy Magazine - September/October 2017 - 14
IEEE Power & Energy Magazine - September/October 2017 - 15
IEEE Power & Energy Magazine - September/October 2017 - 16
IEEE Power & Energy Magazine - September/October 2017 - 17
IEEE Power & Energy Magazine - September/October 2017 - 18
IEEE Power & Energy Magazine - September/October 2017 - 19
IEEE Power & Energy Magazine - September/October 2017 - 20
IEEE Power & Energy Magazine - September/October 2017 - 21
IEEE Power & Energy Magazine - September/October 2017 - 22
IEEE Power & Energy Magazine - September/October 2017 - 23
IEEE Power & Energy Magazine - September/October 2017 - 24
IEEE Power & Energy Magazine - September/October 2017 - 25
IEEE Power & Energy Magazine - September/October 2017 - 26
IEEE Power & Energy Magazine - September/October 2017 - 27
IEEE Power & Energy Magazine - September/October 2017 - 28
IEEE Power & Energy Magazine - September/October 2017 - 29
IEEE Power & Energy Magazine - September/October 2017 - 30
IEEE Power & Energy Magazine - September/October 2017 - 31
IEEE Power & Energy Magazine - September/October 2017 - 32
IEEE Power & Energy Magazine - September/October 2017 - 33
IEEE Power & Energy Magazine - September/October 2017 - 34
IEEE Power & Energy Magazine - September/October 2017 - 35
IEEE Power & Energy Magazine - September/October 2017 - 36
IEEE Power & Energy Magazine - September/October 2017 - 37
IEEE Power & Energy Magazine - September/October 2017 - 38
IEEE Power & Energy Magazine - September/October 2017 - 39
IEEE Power & Energy Magazine - September/October 2017 - 40
IEEE Power & Energy Magazine - September/October 2017 - 41
IEEE Power & Energy Magazine - September/October 2017 - 42
IEEE Power & Energy Magazine - September/October 2017 - 43
IEEE Power & Energy Magazine - September/October 2017 - 44
IEEE Power & Energy Magazine - September/October 2017 - 45
IEEE Power & Energy Magazine - September/October 2017 - 46
IEEE Power & Energy Magazine - September/October 2017 - 47
IEEE Power & Energy Magazine - September/October 2017 - 48
IEEE Power & Energy Magazine - September/October 2017 - 49
IEEE Power & Energy Magazine - September/October 2017 - 50
IEEE Power & Energy Magazine - September/October 2017 - 51
IEEE Power & Energy Magazine - September/October 2017 - 52
IEEE Power & Energy Magazine - September/October 2017 - 53
IEEE Power & Energy Magazine - September/October 2017 - 54
IEEE Power & Energy Magazine - September/October 2017 - 55
IEEE Power & Energy Magazine - September/October 2017 - 56
IEEE Power & Energy Magazine - September/October 2017 - 57
IEEE Power & Energy Magazine - September/October 2017 - 58
IEEE Power & Energy Magazine - September/October 2017 - 59
IEEE Power & Energy Magazine - September/October 2017 - 60
IEEE Power & Energy Magazine - September/October 2017 - 61
IEEE Power & Energy Magazine - September/October 2017 - 62
IEEE Power & Energy Magazine - September/October 2017 - 63
IEEE Power & Energy Magazine - September/October 2017 - 64
IEEE Power & Energy Magazine - September/October 2017 - 65
IEEE Power & Energy Magazine - September/October 2017 - 66
IEEE Power & Energy Magazine - September/October 2017 - 67
IEEE Power & Energy Magazine - September/October 2017 - 68
IEEE Power & Energy Magazine - September/October 2017 - 69
IEEE Power & Energy Magazine - September/October 2017 - 70
IEEE Power & Energy Magazine - September/October 2017 - 71
IEEE Power & Energy Magazine - September/October 2017 - 72
IEEE Power & Energy Magazine - September/October 2017 - 73
IEEE Power & Energy Magazine - September/October 2017 - 74
IEEE Power & Energy Magazine - September/October 2017 - 75
IEEE Power & Energy Magazine - September/October 2017 - 76
IEEE Power & Energy Magazine - September/October 2017 - 77
IEEE Power & Energy Magazine - September/October 2017 - 78
IEEE Power & Energy Magazine - September/October 2017 - 79
IEEE Power & Energy Magazine - September/October 2017 - 80
IEEE Power & Energy Magazine - September/October 2017 - 81
IEEE Power & Energy Magazine - September/October 2017 - 82
IEEE Power & Energy Magazine - September/October 2017 - 83
IEEE Power & Energy Magazine - September/October 2017 - 84
IEEE Power & Energy Magazine - September/October 2017 - 85
IEEE Power & Energy Magazine - September/October 2017 - 86
IEEE Power & Energy Magazine - September/October 2017 - 87
IEEE Power & Energy Magazine - September/October 2017 - 88
IEEE Power & Energy Magazine - September/October 2017 - 89
IEEE Power & Energy Magazine - September/October 2017 - 90
IEEE Power & Energy Magazine - September/October 2017 - 91
IEEE Power & Energy Magazine - September/October 2017 - 92
IEEE Power & Energy Magazine - September/October 2017 - 93
IEEE Power & Energy Magazine - September/October 2017 - 94
IEEE Power & Energy Magazine - September/October 2017 - 95
IEEE Power & Energy Magazine - September/October 2017 - 96
IEEE Power & Energy Magazine - September/October 2017 - 97
IEEE Power & Energy Magazine - September/October 2017 - 98
IEEE Power & Energy Magazine - September/October 2017 - 99
IEEE Power & Energy Magazine - September/October 2017 - 100
IEEE Power & Energy Magazine - September/October 2017 - 101
IEEE Power & Energy Magazine - September/October 2017 - 102
IEEE Power & Energy Magazine - September/October 2017 - 103
IEEE Power & Energy Magazine - September/October 2017 - 104
IEEE Power & Energy Magazine - September/October 2017 - 105
IEEE Power & Energy Magazine - September/October 2017 - 106
IEEE Power & Energy Magazine - September/October 2017 - 107
IEEE Power & Energy Magazine - September/October 2017 - 108
IEEE Power & Energy Magazine - September/October 2017 - 109
IEEE Power & Energy Magazine - September/October 2017 - 110
IEEE Power & Energy Magazine - September/October 2017 - 111
IEEE Power & Energy Magazine - September/October 2017 - 112
IEEE Power & Energy Magazine - September/October 2017 - Cover3
IEEE Power & Energy Magazine - September/October 2017 - Cover4
https://www.nxtbook.com/nxtbooks/pes/powerenergy_050621
https://www.nxtbook.com/nxtbooks/pes/powerenergy_030421
https://www.nxtbook.com/nxtbooks/pes/powerenergy_010221
https://www.nxtbook.com/nxtbooks/pes/powerenergy_111220
https://www.nxtbook.com/nxtbooks/pes/powerenergy_091020
https://www.nxtbook.com/nxtbooks/pes/powerenergy_070820
https://www.nxtbook.com/nxtbooks/pes/powerenergy_050620
https://www.nxtbook.com/nxtbooks/pes/powerenergy_030420
https://www.nxtbook.com/nxtbooks/pes/powerenergy_010220
https://www.nxtbook.com/nxtbooks/pes/powerenergy_111219
https://www.nxtbook.com/nxtbooks/pes/powerenergy_091019
https://www.nxtbook.com/nxtbooks/pes/powerenergy_070819
https://www.nxtbook.com/nxtbooks/pes/powerenergy_050619
https://www.nxtbook.com/nxtbooks/pes/powerenergy_030419
https://www.nxtbook.com/nxtbooks/pes/powerenergy_010219
https://www.nxtbook.com/nxtbooks/pes/powerenergy_111218
https://www.nxtbook.com/nxtbooks/pes/powerenergy_091018
https://www.nxtbook.com/nxtbooks/pes/powerenergy_070818
https://www.nxtbook.com/nxtbooks/pes/powerenergy_050618
https://www.nxtbook.com/nxtbooks/pes/powerenergy_030418
https://www.nxtbook.com/nxtbooks/pes/powerenergy_010218
https://www.nxtbook.com/nxtbooks/pes/powerenergy_111217
https://www.nxtbook.com/nxtbooks/pes/powerenergy_091017
https://www.nxtbook.com/nxtbooks/pes/powerenergy_070817
https://www.nxtbook.com/nxtbooks/pes/powerenergy_050617
https://www.nxtbook.com/nxtbooks/pes/powerenergy_030417
https://www.nxtbook.com/nxtbooks/pes/powerenergy_010217
https://www.nxtbook.com/nxtbooks/pes/powerenergy_111216
https://www.nxtbook.com/nxtbooks/pes/powerenergy_091016
https://www.nxtbook.com/nxtbooks/pes/powerenergy_070816
https://www.nxtbook.com/nxtbooks/pes/powerenergy_050616
https://www.nxtbook.com/nxtbooks/pes/powerenergy_030416
https://www.nxtbook.com/nxtbooks/pes/powerenergy_010216
https://www.nxtbook.com/nxtbooks/ieee/powerenergy_010216
https://www.nxtbook.com/nxtbooks/pes/powerenergy_111215
https://www.nxtbook.com/nxtbooks/pes/powerenergy_091015
https://www.nxtbook.com/nxtbooks/pes/powerenergy_070815
https://www.nxtbook.com/nxtbooks/pes/powerenergy_050615
https://www.nxtbook.com/nxtbooks/pes/powerenergy_030415
https://www.nxtbook.com/nxtbooks/pes/powerenergy_010215
https://www.nxtbook.com/nxtbooks/pes/powerenergy_111214
https://www.nxtbook.com/nxtbooks/pes/powerenergy_091014
https://www.nxtbook.com/nxtbooks/pes/powerenergy_070814
https://www.nxtbook.com/nxtbooks/pes/powerenergy_050614
https://www.nxtbook.com/nxtbooks/pes/powerenergy_030414
https://www.nxtbook.com/nxtbooks/pes/powerenergy_010214
https://www.nxtbookmedia.com