뉴스 및 공지사항
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- 2024.06.14
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[세미나] [ISE/GSDS Seminar] June 19 11:00 / Room 2122 in E-2 Building / Cost-saving synergy: Energy stacking in battery energy storage systems / Joonho Bae / Ph.D. candidate / Technology and Operations at the Stephen M. Ross School of Business / University of
ISysE / GSDS 세미나가 다음과 같이 진행될 예정입니다.
# 날짜/시간: 2024년 6월 19일 수요일 11:00~12:00
# 장소 : E-2동 2122호
# 연사 : Joonho Bae / Ph.D. candidate / Technology and Operations at the Stephen M. Ross School of Business / University of Michigan
# 제목 : Cost-saving synergy: Energy stacking in battery energy storage systems
# 초록 : Despite the great potential benefits of battery energy storage systems (BESS) to electrical grids, most standalone uses of BESS are not economical due to batteries’ high upfront costs and limited lifespans. Energy stacking, a strategy of providing two or more services with a single BESS, has been of great interest to improve profitability. However, some key questions, e.g., the underlying mechanism by which stacking works, or why and how much it may improve profitability, remain unanswered in the literature. Using two popular battery services, we analytically show that there often exists cost-saving synergy — the cost of performing both services at the same time (simultaneous stacking) is smaller than the sum of individual costs if we had performed each service alone — which allows for bigger profits. Furthermore, we perform comparative statics on the optimal mix of the services to systemically characterize grid/market conditions that maximize/minimize this synergy. We also derive a theoretical upper bound on simultaneous stacking’s benefits, showing that it can approximately double the profit of the best standalone service. Several generalizations of the base model not only show that the main lessons continue to hold but also that stacking’s benefits may become even stronger.
# Bio : Joonho Bae is a Ph.D. candidate in Technology and Operations at the Stephen M. Ross School of Business, University of Michigan. His research focuses on developing mathematical models to understand, monitor, and control dynamic systems at the intersection of operations, marketing, and engineering. Recently, he has developed an interest in energy markets and sustainable storage/battery operations. He earned his B.S. in Statistics and Financial Economics from Seoul National University (SNU) in 2016 and his M.S. in Industrial & Systems Engineering from the Korea Advanced Institute of Science and Technology (KAIST) in 2019.
많은 관심 부탁드립니다.
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ISysE/GSDS dept. office invites you to the following seminar.
# Time/Date : June 19, 2024 (Wed.) 11:00~12:00
# Location : Room 1501 in E-2 building
# Presenter : Joonho Bae / Ph.D. candidate / Technology and Operations at the Stephen M. Ross School of Business / University of Michigan
# Title : Cost-saving synergy: Energy stacking in battery energy storage systems
# Abstract : Despite the great potential benefits of battery energy storage systems (BESS) to electrical grids, most standalone uses of BESS are not economical due to batteries’ high upfront costs and limited lifespans. Energy stacking, a strategy of providing two or more services with a single BESS, has been of great interest to improve profitability. However, some key questions, e.g., the underlying mechanism by which stacking works, or why and how much it may improve profitability, remain unanswered in the literature. Using two popular battery services, we analytically show that there often exists cost-saving synergy — the cost of performing both services at the same time (simultaneous stacking) is smaller than the sum of individual costs if we had performed each service alone — which allows for bigger profits. Furthermore, we perform comparative statics on the optimal mix of the services to systemically characterize grid/market conditions that maximize/minimize this synergy. We also derive a theoretical upper bound on simultaneous stacking’s benefits, showing that it can approximately double the profit of the best standalone service. Several generalizations of the base model not only show that the main lessons continue to hold but also that stacking’s benefits may become even stronger.
# Bio : Joonho Bae is a Ph.D. candidate in Technology and Operations at the Stephen M. Ross School of Business, University of Michigan. His research focuses on developing mathematical models to understand, monitor, and control dynamic systems at the intersection of operations, marketing, and engineering. Recently, he has developed an interest in energy markets and sustainable storage/battery operations. He earned his B.S. in Statistics and Financial Economics from Seoul National University (SNU) in 2016 and his M.S. in Industrial & Systems Engineering from the Korea Advanced Institute of Science and Technology (KAIST) in 2019.
We look forward to meeting you.