Columbia Technology Ventures

Algorithm for optimal bidding of energy storage into energy markets

This technology is an algorithm that generates the optimal bid for an energy storage, thereby maximizing the profit generated for the energy.

Unmet Need: Energy storage bidding that can dynamically incorporate demand

Current methods to discharge energy from storage are based on a combination of the demand and the price set by the system operator. However, this model is suboptimal as it does not accommodate changes in demand, and results in a loss of profit for the operator.

The Technology: A fast algorithm for optimal energy storage bidding

This algorithm is a dynamic solution to optimize the profit generated for an operator of an energy storage. As demand fluctuates, the algorithm can adapt the bids that are considered successful. In doing so, the energy storage can maximize its profits regardless of the current demand. Furthermore, this algorithm has been adapted for speed, without any proprietary software, and can also incorporate additional nonlinear models as needed.

Applications:

  • Optimal marketing of energy storage markets
  • Optimized allocation for other markets with dynamic demand
  • Research tool for optimizing energy storage devices to fit demand

Advantages:

  • Optimal response to bidding, maximizing revenue for the energy storage operator
  • Rapid computation
  • Flexible implementation on any coding platform without proprietary software
  • Can incorporate a nonlinear model with additional factors

Lead Inventor:

Bolun Xu, Ph.D.

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