Electricity storage facilities, such as industrial batteries, are considered the “holy grail” in decarbonizing the electrical grid. They are being widely installed in commercial buildings, e.g., hospitals, shopping centers. We model the problem of managing electricity storage in a commercial building as a Markov Decision Process. Our numerical results, based on models calibrated to the electricity load profiles of 100 commercial buildings in the U.S., show that for a majority of electricity load profiles, storage operation may increase carbon emission. This result continues to hold for the case where commercial buildings are covered with solar panels.
electricity storage, commercial building, carbon emission, demand charge
Energy Policy | Operations and Supply Chain Management
POMS-HK International 8th Conference 2017, January 7-8; MSOM 2017, June 20-21
Korea Research Institute for Human Settlements
City or Country
Chapel Hill, NC
Is electricity storage green? A study on commercial buildings. (2017). POMS-HK International 8th Conference 2017, January 7-8; MSOM 2017, June 20-21. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/5289
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