Quantifying the importance of power system operation constraints in power system planning models: A case study for electricity storage

The realized and expected growth of variable renewable energy sources challenges both power system operation and power system planning. A decreasing share of dispatchable generation technologies in electricity generation and an increasing need for short-term flexibility means that the added value of alternative short-term flexibility providers, such as electricity storage, becomes important. This paper studies the way in which alternative flexible resources, here storage technologies, generate added value by running various set-ups of a power system planning model with different levels of operational detail. Firstly, this allows to identify the different roles flexible technologies play in power system operation, and the subsequent impact on power system planning. Secondly, this allows to determine the importance of operational detail in power system planning models to accurately assess the value of flexibility. Results show that storage technologies have the technical ability to provide firm capacity, smoothen the residual load curve, manage the impact of hourly dispatch constraints and provide reserve capacity. Nevertheless, the extent to which this is translated into investment depends on how cost-effectively a technology can offer these services. Results further show that to fully capture the added value of flexibility providers high operational detail is needed in planning models.status: publishe