On the Optimal Management of Energy Storage

In the present work, we consider a problem of optimizing storage management for a storage device, whose actions do not affect the market prices of electricity. An owner of the device can buy energy at fixed tariffs or at wholesale market prices and sell it back to the network at these prices. He aims to maximize his profit from the energy resale in a given planning interval. We obtain an efficient algorithm for calculating the optimal storage strategy. This algorithm permits to search for a solution to the problem in an “almost analytical” form. The solution is of interest for consumers using storage devices, as well as for a centralized regulation of electricity networks.