Stochastic energy demand and the stabilization value of energy storage

Y. Tsur, A. Zemel

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


The economic value of energy storage to meet peak electricity demand is analyzed with an emphasis on the role of demand uncertainty. The concept of the stabilization value, which measures that part of the benefit of the storage project which is due solely to the stochastic demand components, is defined. The magnitude of the stabilization value, relative to the overall value of energy storage, is evaluated in terms of a simple model that accounts for the relevant characteristics of the electric power utility's production mix. It is found that neglecting the demand uncertainty can seriously bias the benefit assessment of the storage project as well as the determination of the optimal storage capacity. -Authors

Original languageEnglish
Pages (from-to)435-447
Number of pages13
JournalNatural Resource Modeling
Issue number4
StatePublished - 1 Jan 1992
Externally publishedYes

ASJC Scopus subject areas

  • Modeling and Simulation
  • Environmental Science (miscellaneous)


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