TY - JOUR
T1 - Stochastic energy demand and the stabilization value of energy storage
AU - Tsur, Y.
AU - Zemel, A.
PY - 1992
Y1 - 1992
N2 - The economic value of energy storage to meet peak electricity demand is analyzed with an emphasis on the role of demand uncertainty. The concept of the stabilization value, which measures that part of the benefit of the storage project which is due solely to the stochastic demand components, is defined. The magnitude of the stabilization value, relative to the overall value of energy storage, is evaluated in terms of a simple model that accounts for the relevant characteristics of the electric power utility's production mix. It is found that neglecting the demand uncertainty can seriously bias the benefit assessment of the storage project as well as the determination of the optimal storage capacity. -Authors
AB - The economic value of energy storage to meet peak electricity demand is analyzed with an emphasis on the role of demand uncertainty. The concept of the stabilization value, which measures that part of the benefit of the storage project which is due solely to the stochastic demand components, is defined. The magnitude of the stabilization value, relative to the overall value of energy storage, is evaluated in terms of a simple model that accounts for the relevant characteristics of the electric power utility's production mix. It is found that neglecting the demand uncertainty can seriously bias the benefit assessment of the storage project as well as the determination of the optimal storage capacity. -Authors
UR - http://www.scopus.com/inward/record.url?scp=0026957334&partnerID=8YFLogxK
U2 - 10.1111/j.1939-7445.1992.tb00288.x
DO - 10.1111/j.1939-7445.1992.tb00288.x
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AN - SCOPUS:0026957334
SN - 0890-8575
VL - 6
SP - 435
EP - 447
JO - Natural Resource Modeling
JF - Natural Resource Modeling
IS - 4
ER -