A methodology for storage allocation in large-scale integrated energy systems based on nodal prices

Since electricity generation from wind and photovoltaics is volatile, storage units are needed for future energy systems to meet demand and reduce grid congestion and renewables (RES) curtailment. Due to grid constraints, the location of storage units is particularly important. Optimal storage allocation requires many computational resources. We propose a heuristic method for storage allocation in the transmission grid using nodal prices to indicate beneficial locations. The goal is to minimize system costs and reduce RES curtailment while mitigating computational effort. Due to the growing interconnectivity between the electricity and gas sectors, additionally, a heuristic method that allocates hydrogen storages to decommissioned natural gas storages as well as new additional storages, is presented. The results show that a well-parametrized nodal-based allocation outperforms the proposed benchmarks. We observe, that, from a system perspective, storage units with higher capacity rates are preferable due to their lower investments and operation and maintenance costs.