  The growing amount of intermittent renewables in power generation creates
challenges for real-time matching of supply and demand in the power grid.
Emerging ancillary power markets provide new incentives to consumers (e.g.,
electrical vehicles, data centers, and others) to perform demand response to
help stabilize the electricity grid. A promising class of potential demand
response providers includes energy storage systems (ESSs). This paper evaluates
the benefits of using various types of novel ESS technologies for a variety of
emerging smart grid demand response programs, such as regulation services
reserves (RSRs), contingency reserves, and peak shaving. We model, formulate
and solve optimization problems to maximize the net profit of ESSs in providing
each demand response. Our solution selects the optimal power and energy
capacities of the ESS, determines the optimal reserve value to provide as well
as the ESS real-time operational policy for program participation. Our results
highlight that applying ultra-capacitors and flywheels in RSR has the potential
to be up to 30 times more profitable than using common battery technologies
such as LI and LA batteries for peak shaving.
