Method for bidding battery storage into hour-ahead energy markets

摘要

A method for generating bids for a look-ahead, e.g. hour-ahead, energy market is disclosed. The method includes providing a processor configured to generate a lookup table approximating a value function having four dimensions including: state of the storage system, price of electricity, prior low bid and prior high bid. The processor is configured to observe an initial numeric value for a first set of dimensions and exploiting monotonicity to update a first region of the lookup table. The processor is configured to iteratively observe subsequent numeric values for a next set of dimensions and update subsequent regions of the lookup table while exploiting monotonicity to generate the lookup table. The value function is configured with numeric values for all possible sets of dimensions, the numeric values being usable to compute optimal bids.