Impacts of transmission tariff on price arbitrage operation of energy storage system in Alberta electricity market

This paper investigates the application of existing tariff structures to understand how they impact the economic operation of energy storage system (ESS) for arbitrage. The scope of this research covers impacts on profitability, operating cost, energy-traded volume, and price volatility. Two facilities of different scales are considered: an ESS unit small enough to have no impact on price, and an ESS unit, large enough to have a quantifiable impact on pool price. The hourly impact of ESS operations on the pool price is estimated by modeling the price sensitivity quota curve from actual hourly market data.