CAP Seminar Series

 

Title:  FACILITATING SOCIAL WELFARE CONVERGENCE OF STRATEGIC ENERGY STORAGE IN ELECTRICITY MARKETS

Speaker: Dr. Bolun Xu, Columbia University

Venue: EENG 909b

Date and Time: Monday 24 March 2025, 11:00-12:00

Abstract:  Energy storage resources—particularly batteries—are rapidly becoming key participants in electricity markets. By arbitraging price differences, they generate profit and help reduce peak demand and mitigate fluctuations from renewable resources. However, their effective market participation is complicated by the need to account for future price opportunities and associated uncertainties. Consequently, energy storage operators are allowed to withhold capacity for legitimate economic reasons, rather than strictly basing market offers on physical cost factors. These market dynamics pose unique challenges for storage operators seeking to optimize returns and for system regulators tasked with preventing market power abuse and facilitating social welfare convergence.
This talk introduces the challenges and opportunities in scaling up energy storage deployments in power systems. I will highlight the need for advanced tools to optimize and monitor storage operations, emphasizing the integration of physical-based optimization models with machine learning. I will also present a theoretical framework that clarifies the complexities of energy storage market-offer design and interpretation, and propose insights for promoting social welfare convergence in the context of storage participation.

Biography:  Dr. Bolun Xu is an Assistant Professor in Earth and Environmental Engineering at Columbia University, with an affiliation in Electrical Engineering. He received his Ph.D. from the University of Washington, M.S. from ETH Zurich, and B.S. from Shanghai Jiao Tong University, all in electrical engineering. Before joining Columbia, he was a postdoctoral fellow at the MIT Energy Initiative. His research focuses on designing and optimizing sustainable energy and power systems and integrating emerging technologies. Dr. Xu is a recipient of the NSF CAREER Award, the Young Investigator Award from the IISE Energy Systems Division, and the Early Career Award from the INFORMS Energy, Natural Resources, and Environment Section.

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