Optimizing Energy Storage Participation in Emerging Power Markets

The growing amount of intermittent renewables in power generation creates challenges for real-time matching of supply and demand in the power grid. Emerging ancillary power markets provide new incentives to consumers (e.g., electrical vehicles, data centers, and others) to perform demand response to help stabilize the electricity grid. A promising class of potential demand response providers includes energy storage systems (ESSs). This paper evaluates the benefits of using various types of novel ESS technologies for a variety of emerging smart grid demand response programs, such as regulation services reserves (RSRs), contingency reserves, and peak shaving. We model, formulate and solve optimization problems to maximize the net profit of ESSs in providing each demand response. Our solution selects the optimal power and energy capacities of the ESS, determines the optimal reserve value to provide as well as the ESS real-time operational policy for program participation. Our results highlight that applying ultra-capacitors and flywheels in RSR has the potential to be up to 30 times more profitable than using common battery technologies such as LI and LA batteries for peak shaving.Comment: The full (longer and extended) version of the paper accepted in IGSC 201

Optimizing energy storage participation in emerging power markets

The growing amount of intermittent renewables in power generation creates challenges for real-time matching of supply and demand in the power grid. Emerging ancillary power markets provide new incentives to consumers (e.g., electrical vehicles, data centers, and others) to perform demand response to help stabilize the electricity grid. A promising class of potential demand response providers includes energy storage systems (ESSs). This paper evaluates the benefits of using various types of novel ESS technologies for a variety of emerging smart grid demand response programs, such as regulation services reserves (RSRs), contingency reserves, and peak shaving. We model, formulate and solve optimization problems to maximize the net profit of ESSs in providing each demand response. Our solution selects the optimal power and energy capacities of the ESS, determines the optimal reserve value to provide as well as the ESS real-time operational policy for program participation. Our results highlight that applying ultra-capacitors and flywheels in RSR has the potential to be up to 30 times more profitable than using common battery technologies such as LI and LA batteries for peak shaving

Fighting Poverty, Profitably: Transforming the Economics of Payments to Build Sustainable, Inclusive Financial Systems

The Gates Foundation's Financial Services for the Poor program (FSP) believes that effective financial services are paramount in the fight against poverty. Nonetheless, today more than 2 billion people live outside the formal financial sector. Increasing their access to high quality, affordable financial services will accelerate the well-being of households, communities, and economies in the developing world. One of the most promising ways to deliver these financial services to the poor -- profitably and at scale -- is by using digital payment platforms.These are the conclusions we have reached as the result of extensive research in pursuit of one of the Foundation's primary missions: to give the world's poorest people the chance to lift themselves out of hunger and extreme poverty.FSP conducted this research because we believe that there is a gap in the fact base and understanding of how payment systems can extend digital services to low income consumers in developing markets. This is a complex topic, with fragmented information and a high degree of country-by-country variability. A complete view across the entire payment system has been missing, limiting how system providers, policy makers, and regulators (groups we refer to collectively as financial inclusion stakeholders) evaluate decisions and take actions. With a holistic view of the payment system, we believe that interventions can have higher impact, and stakeholders can better understand and address the ripple effects that changes to one part of the system can have. In this report, we focus on the economics of payment systems to understand how they can be transformed to serve poor people in a way that is profitable and sustainable in aggregate

The Size and Role of Government Economic Issues

[Excerpt] The size and role of the government is one of the most fundamental and enduring debates in American politics. Economics can be used to analyze the relative merits of government intervention in the economy in specific areas, but it cannot answer the question of whether there is “too much” or “too little” government activity overall. That is not to say that one cannot find many examples of government programs that economists would consider to be a highly inefficient, if not counterproductive, way to achieve policy goals. Reducing inefficient government spending would benefit the economy; however, reducing efficient government spending would harm it, and reducing the size of government could involve either one. Government intervention can increase economic efficiency when market failures or externalities exist. Political choices may lead to second-best economic outcomes, however, and some argue that, for that reason, market failures can be preferable to government intervention. In the absence of market failures and externalities, there is little economic justification for government intervention, which lowers efficiency and probably economic growth. But government intervention is often based on the desire to achieve social goals, such as income redistribution. Economics cannot quantitatively value social goals, although it can often offer suggestions for how to achieve those goals in the least costly way. The government intervenes in the economy in four ways. First, it produces goods and services, such as infrastructure, education, and national defense. Measuring the effects of these goods and services is difficult because they are not bought and sold in markets. Second, it transfers income, both vertically across income levels and horizontally among groups with similar incomes and different characteristics. Third, it taxes to pay for its outlays, which can lower economic efficiency by distorting behavior. Not all taxes are equally distortionary, however, so there are ways of reducing the costs of taxation without changing the size of government. Furthermore, deficit spending does not allow the government to escape the burden of taxation since deficits impose their own burden. Finally, government regulation alters economic activity. The economic effects of regulation are the most difficult to measure, in terms of both costs and benefits, yet they cannot be neglected because they can be interchangeable with taxes or government spending. There are many different ways to measure the size of the government, making its economic effects difficult to evaluate. Budgeting conventions are partly responsible: tax expenditures, offsetting receipts and collections, and government corporations are all excluded from the budget. But some governmental functions, like regulation, simply cannot be quantified robustly. Discussions about the overall size of government mask significant changes in the composition of government spending over time. Spending has shifted from the federal to the state and local level. Federal production of goods and services has fallen, while federal transfers have grown significantly. In 2008, nearly two-thirds of federal spending is devoted to Social Security, Medicare, Medicaid, and national defense. Thus, there is limited scope to alter the size of government without fundamentally altering these programs. The share of federal spending devoted to the elderly has burgeoned over time, and this trend is forecast to continue. The size of government has increased significantly since the financial crisis of 2008 as a result of the government’s unplanned intervention in financial markets and subsequent stimulus legislation. Much of this increase in government spending could be reversed when financial conditions return to normal, although critics are skeptical about how easy it will be for the government to extricate itself from the new commitments its made

Using Battery Storage for Peak Shaving and Frequency Regulation: Joint Optimization for Superlinear Gains

We consider using a battery storage system simultaneously for peak shaving and frequency regulation through a joint optimization framework which captures battery degradation, operational constraints and uncertainties in customer load and regulation signals. Under this framework, using real data we show the electricity bill of users can be reduced by up to 15\%. Furthermore, we demonstrate that the saving from joint optimization is often larger than the sum of the optimal savings when the battery is used for the two individual applications. A simple threshold real-time algorithm is proposed and achieves this super-linear gain. Compared to prior works that focused on using battery storage systems for single applications, our results suggest that batteries can achieve much larger economic benefits than previously thought if they jointly provide multiple services.Comment: To Appear in IEEE Transaction on Power System

Distributed Stochastic Market Clearing with High-Penetration Wind Power

Integrating renewable energy into the modern power grid requires risk-cognizant dispatch of resources to account for the stochastic availability of renewables. Toward this goal, day-ahead stochastic market clearing with high-penetration wind energy is pursued in this paper based on the DC optimal power flow (OPF). The objective is to minimize the social cost which consists of conventional generation costs, end-user disutility, as well as a risk measure of the system re-dispatching cost. Capitalizing on the conditional value-at-risk (CVaR), the novel model is able to mitigate the potentially high risk of the recourse actions to compensate wind forecast errors. The resulting convex optimization task is tackled via a distribution-free sample average based approximation to bypass the prohibitively complex high-dimensional integration. Furthermore, to cope with possibly large-scale dispatchable loads, a fast distributed solver is developed with guaranteed convergence using the alternating direction method of multipliers (ADMM). Numerical results tested on a modified benchmark system are reported to corroborate the merits of the novel framework and proposed approaches.Comment: To appear in IEEE Transactions on Power Systems; 12 pages and 9 figure

COLOMBIA COFFEE SECTOR STUDY.

El presente documento analiza la evolución del sector cafetero colombiano en la última década, periodo en el cual ha perdido valor. Se hace un diagnóstico de las causas que han generado el retroceso del sector y propone unas estrategias de política para que vuelva a ser competitivo en los mercados internacionales. De las conclusiones se destaca la necesidad de mejorar la eficiencia en la producción para poder competir a precios cada día mas bajos en el mercado mundial, se propone una estrategia para desarrollar negocios en los nichos de los llamados cafés especiales a los que se les reconocen primas superiores por parte de los compradores, y en el plano regulatorio se recomienda que la parafiscalidad que afecta al sector sea reformulada para que el impuesto que tributan los cafeteros sea bajo, estable y fijo en el tiempo. Con los recursos que se generen por esta contribución se deberán financiar los programas prioritarios para beneficio de los caficultores. Programas que de manera individual no pueden ser acometidos (Investigación o promoción). El rol de la institucionalidad cafetera deberá ser reformulado. Los recursos del café no deben seguir suplantando los recursos del Estado en obras públicas en las regiones cafeteras, pero la organización cafetera regional puede convertirse en un ejecutor importante de proyectos de inversión con recursos del presupuesto general de la Nación.Economía Agrícola, Comercio Internacional, Economía Institucional

Civil tiltrotor missions and applications. Phase 2: The commercial passenger market

The commercial passenger market for the civil tiltrotor was examined in phase 2. A market responsive commercial tiltrotor was found to be technically feasible, and a significant worldwide market potential was found to exist for such an aircraft, especially for relieving congestion in urban area-to-urban area service and for providing cost effective hub airport feeder service. Potential technical obstacles of community noise, vertiport area navigation, surveillance, and control, and the pilot/aircraft interface were determined to be surmountable. Nontechnical obstacles relating to national commitment and leadership and development of ground and air infrastructure were determined to be more difficult to resolve; an innovative public/private partnership is suggested to allow coordinated development of an initial commercial tiltrotor network to relieve congestion in the crowded US Northeast corridor by the year 2000

Cross-Border Securitization: Without Law, But Not Lawless

The Article discusses two puzzles posed by cross-border securitization. First, why do the innovators in this area give away their creations through publications and other means rather than attempt to extract licensing fees by registering copyrights, patents, and trade names? The Article shows that innovators benefit from giving away their innovations through fees of the first clients or future clients to a greater extent than through licensing fees. Second, how can securitization markets develop under fragmented and unpredictable laws? The Article argues that cross-border securitization is flourishing under a law merchant, which is later incorporated into domestic laws. In fact, innovations and standardization of law are developing in tandem and the same professionals that innovate are those that work on standardization of the law. The Article concludes that cross-border securitization serves as a case study of legal change from the bottom up, rather than from the top down