Energy storage operation and electricity market design: On the market power of monopolistic storage operators

Endre Bjørndal, Mette Bjørndal, Stefano Coniglio, Marc-Fabian Körner, Christina Leinauer, Martin Weibelzahl

Abstract: Highlights•We propose a four-stage Stackelberg game with a monopolistic storage operator.•We consider bidding on a day-ahead and a real-time electricity market.•We present a reformulation of the four-stage game into a single-level problem.•We compare different market designs regarding storage revenue and system costs.•We illustrate the importance of appropriate market design and bidding language.