Method for bidding battery storage into hour-ahead energy markets
A method for generating bids for a look-ahead, e.g. hour-ahead, energy market is disclosed. The method includes providing a processor configured to generate a lookup table approximating a value function having four dimensions including: state of the storage system, price of electricity, prior low bid and prior high bid. The processor is configured to observe an initial numeric value for a first set of dimensions and exploiting monotonicity to update a first region of the lookup table. The processor is configured to iteratively observe subsequent numeric values for a next set of dimensions and update subsequent regions of the lookup table while exploiting monotonicity to generate the lookup table. The value function is configured with numeric values for all possible sets of dimensions, the numeric values being usable to compute optimal bids.
1. A method for controlling a plurality of energy storage systems coupled to a power grid, the method comprising:
providing a plurality of energy storage systems;
providing a central processor and a plurality of storage system processors, the central processor being in communication with the plurality of storage system processors, each storage system processor being coupled to one of the plurality of energy storage systems;
the central processor being programmed to generate a lookup table approximating a value function having four dimensions including: state of the storage system, price of electricity, prior low bid, and prior high bid;
the central processor or the plurality of storage system processors being programmed to generate near-optimal charge/discharge instructions for the plurality of energy storage systems based on the generated lookup table; and
charging/discharging the plurality of energy storage systems based on the generated charge/discharge instructions;
wherein generation of the lookup table comprises:
observing an initial numeric value for a first set of dimensions and exploiting monotonicity of the value function to update a first region of the lookup table; and
iteratively observing subsequent numeric values for a next set of dimensions and exploiting monotonicity of the value function to update subsequent regions of the lookup table, the lookup table having numeric values for all possible sets of dimensions.
2. The method of claim 1 further comprising generating bids for a look-ahead energy market, wherein the look-ahead energy market is an hour-ahead energy market.
3. The method of claim 1 further comprising locating a specific numeric value in the lookup table based on a known set of dimensions and generating optimal bids for a look-ahead energy market based on the specific numeric value.
4. The method of claim 3 further comprising providing a second processor programmed to locate the specific numeric value in the lookup table and generate the optimal bids based on the specific numeric value.
5. The method of claim 3 wherein the optimal bids include a low bid for a future time period and a high bid for the future time period.
6. The method of claim 1 wherein the lookup table is updated on a periodic basis.
7. The method of claim 1 wherein the lookup table is updated on a daily basis.
8. A system for controlling a plurality of energy storage systems coupled to a power grid, the system comprising:
a plurality of energy storage systems;
a central processor and a plurality of storage system processors, the central processor being in communication with the plurality of storage system processors, each storage system processor being coupled to one of the plurality of energy storage systems;
the central processor being programmed to generate a lookup table approximating a value function having four dimensions including: state of the storage system, price of electricity, prior low bid, and prior high bid; and
the central processor or the plurality of storage system processors being programmed to generate near-optimal charge/discharge instructions for the plurality of energy storage systems based on the generated lookup table;
the plurality of energy storage systems being charged/discharged based on the generated charge/discharge instructions;
wherein generation of the lookup table comprises:
observing an initial numeric value for a first set of dimensions and exploiting monotonicity of the value function to update a first region of the lookup table; and
iteratively observing subsequent numeric values for a next set of dimensions and exploiting monotonicity of the value function to update subsequent regions of the lookup table, the lookup table having numeric values for all possible sets of dimensions.
9. The system of claim 8 wherein the central processor is programmed to locate a specific numeric value in the lookup table based on a known set of dimensions and generate optimal bids for a look-ahead energy market based on the specific numeric value.
10. The system of claim 9 wherein a second processor is programmed to locate the specific numeric value in the lookup table based on a known set of dimensions and generate the optimal bids based on the specific numeric value.
11. The system of claim 9 wherein the optimal bids include a low bid for a future time period and a high bid for the future time period.
12. The system of claim 8 wherein the lookup table is updated on a periodic basis.
13. The system of claim 8 wherein the lookup table is updated on a daily basis.
14. A non-transitory computer-readable medium having stored thereon a computer program for execution by a central processor and plurality of storage system processors configured to perform a method for controlling a plurality of energy storage systems coupled to a power grid, the method comprising:
providing a plurality of energy storage systems;
providing the central processor and plurality of storage system processors, the central processor being in communication with the plurality of storage system processors, each storage system processor being coupled to one of the plurality of energy storage systems;
the central processor being programmed to generate a lookup table approximating a value function having four dimensions including: state of the storage system, price of electricity, prior low bid and prior high bid; and
the central processor or the plurality of storage system processors being programmed to generate near-optimal charge/discharge instructions for the plurality of energy storage systems based on the generated lookup table;
charging/discharging the plurality of energy storage systems based on the generated charge/discharge instructions;
wherein generation of the lookup table comprises:
observing an initial numeric value for a first set of dimensions and exploiting monotonicity of the value function to update a first region of the lookup table; and
iteratively observing subsequent numeric values for a next set of dimensions and exploiting monotonicity of the value function to update subsequent regions of the lookup table, the lookup table having numeric values for all possible sets of dimensions.
15. The computer-readable medium of 14 further comprising locating a specific numeric value in the lookup table based on a known set of dimensions and generating optimal bids for a look-ahead energy market based on the specific numeric value.
16. The computer-readable medium of 15 wherein the optimal bids include a low bid for a future time period and a high bid for the future time period.
17. The computer-readable medium of 14 wherein the lookup table is updated on a periodic basis.
18. The computer-readable medium of 14 wherein the lookup table is updated on a daily basis.
19. The system of claim 9 wherein the look-ahead energy market is an hour-ahead energy market.
20. The computer-readable medium of claim 15 wherein the look-ahead energy market is an hour-ahead energy market.