Shaping Method Column
This column defines the shaping method for the Shaping Target as either:
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Demand - Demand used for shaping is based on the Shaping Target input, a comma-delimited list of zones, where demand for the zones is summed to get a target shape. The quadratic optimization problem seeks to minimize the variance of the demand net of storage, and overall reduces the volatility of the demand shape.
- Price - Unless Input Price is entered, a price-to-demand relationship is determined dynamically by the prices (for zone(s) or nodal hub) and zonal demand previously seen in the simulation. A regression is used to estimate a linear relationship between demand and price, and is part of the optimization problem itself. The quadratic program seeks to maximize the value of storage units given the expected price-to-demand relationship. In general, the optimization sees that as the storage units generate the prices drop, and as the units charge the prices increase If multiple zones are referenced, the load-weighted average of their prices is used.
Overall, the simulation collects data hourly to estimate the price-to-demand relationship for use in the storage optimization, however this is not quite like the preforecast used in traditional commitment. In this case, demand and price data are based on values from the previous month, with the prior month's demand, net of the storage operation, being used to determine the relationship. Once price-to-demand relationship is estimated, the optimization seeks to maximize value of the storage unit.
Shaping Method Column