User-optimal Storage with Rising Energy Prices

Abstract—When energy prices fluctuate, small scale storage, such as provided by electric vehicles or unin-terruptible power supplies, allows users to reduce their overall costs by buying in price troughs. However, if future prices are rising, a user may be inclined to store energy long-term. By analysing the structural properties of the charging schedule for energy storage systems,this paper demonstrates that long-term storage is optimal only if prices are rising extremely rapidly. The tools and methods described in this report is part of a broader investigation into the application of data networking concepts in energy networks. I