Bi-Level Arbitrage Potential Evaluation for Grid-Scale Energy Storage Considering Wind Power and LMP Smoothing Effect
- Univ. of Tennessee, Knoxville, TN (United States). Dept. of Electrical Engineering and Computer Science
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Jiangsu Electric Power Supply Company, Nanjing (China)
- Rutgers Univ., Piscataway, NJ (United States). Dept. of Industrial and Systems Engineering
Our paper deals with extended-term energy storage (ES) arbitrage problems to maximize the annual revenue in deregulated power systems with high penetration wind power. The conventional ES arbitrage model takes the locational marginal prices (LMP) as an input and is unable to account for the impacts of ES operations on system LMPs. This paper proposes a bi-level ES arbitrage model, where the upper level maximizes the ES arbitrage revenue and the lower level simulates the market clearing process considering wind power and ES. The bi-level model is formulated as a mathematical program with equilibrium constraints (MPEC) and then recast into a mixed-integer linear programming (MILP) using strong duality theory. Wind power fluctuations are characterized by the GARCH forecast model and the forecast error is modeled by forecast-bin based Beta distributions. Case studies are performed on a modified PJM 5-bus system and an IEEE 118-bus system with a weekly time horizon over an annual term to show the validity of the proposed bi-level model. The results from the conventional model and the bi-level model are compared under different ES power and energy ratings, and also various load and wind penetration levels.
- Research Organization:
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE); National Science Foundation (NSF)
- Grant/Contract Number:
- AC36-08GO28308; EEC-1041877
- OSTI ID:
- 1399353
- Report Number(s):
- NREL/JA-5D00-70140
- Journal Information:
- IEEE Transactions on Sustainable Energy, Vol. 9, Issue 2; ISSN 1949-3029
- Publisher:
- IEEECopyright Statement
- Country of Publication:
- United States
- Language:
- English
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