Renewable, flexible, and storage capacities: Friends or Foes?
Xiaoshan Peng, Owen Wu, Gilvan Souza
Indiana University, United States of America
Discussant: John R. Birge (University of Chicago)
We study the investment relations among the renewable, flexible, and storage capacities. We optimize the joint operations of these three types of resources. We then optimize the investment mix of these resources and examine the investment relations among them. We find that whether storage complements or substitutes other resources depends on how storage reduces operating cost and whether the potential cost reduction is constrained by charging or discharging.