AA4 – Energy Transition

In this project we want to model a volatile electricity market together with a stationary battery storage device to reduce an electricity consumer’s overall cost. This is achieved by a stochastic optimal control problem with a virtual battery as constraint to determine charging and discharging. Our goal is to develop a mathematical tool that empowers electrical energy consumers to reduce their energy expenses through the integration of a Stationary Battery Storage Devices (SBSD) within their local electricity supply system (refer to the Figure). We assume that operating the SBSD does not affect the electricity market as a whole. Initially, our focus is on formulating a stochastic optimal control problem that accounts for the continuous time-dependent charging and discharging of the virtual battery. The charging and discharging strategies are influenced by various factors, including (i) the electricity price market, (ii) forecast indicators such as wind conditions and forward prices, and (iii) specific conditions for the battery, such as degradation effects. This is achieved by a combination of stochastic and PDE based modeling, numerical simulations and data processing.