Princeton University Library Catalog
- Kula, Kabo [Browse]
- Senior thesis
- Powell, Warren [Browse]
- Princeton University. Department of Operations Research and Financial Engineering [Browse]
- Class year:
- 88 pages
- Summary note:
- As the world becomes more environmentally friendly, an emphasis is made on transitioning
from fossil-fuel electricity generation to renewable sources. However, the
integration of renewable resources such as solar poses a challenge both on a residential
and grid-level due to high costs and an intermittent nature of weather conditions.
To ameliorate the problem of intermittence, a commonly proposed solution is energy
storage. In this thesis we explore the economic viability of storage and solar power
from two distinct settings; first behind the meter, where we observe economics of
solar and storage for a single household. We then shift in front of the meter, and
model a revenue optimization problem for a grid-scale generator with a significant
solar portfolio. On a residential level, we find that not only does storage exhibit an
increasing marginal cost, but that a solar and storage portfolio can never outperform
the grid on a month-by-month cost basis. For our grid-level problem, we implement
an exhaustive search to optimize over a parametric policy function approximation.
The results show that charging from the grid at lower prices has a higher impact on
maximizing revenue than does discharging the battery at higher prices.