Economic dispatch for electricity merchant with energy storage and wind plant: State of charge based decision making considering market impact and uncertainties

Liu, Jian; Sun, Xin-yue; Bo, Rui; Wang, Siyuan; Ou, Meng

doi:10.1016/j.est.2022.104816

Economic dispatch for electricity merchant with energy storage and wind plant: State of charge based decision making considering market impact and uncertainties

Journal Article · Tue Jul 12 04:00:00 EDT 2022 · Journal of Energy Storage

DOI:https://doi.org/10.1016/j.est.2022.104816· OSTI ID:1977115

Liu, Jian ^[1]; Sun, Xin-yue ^[2]; Bo, Rui ^[3]; Wang, Siyuan ^[3]; Ou, Meng ^[2]

Missouri Univ. of Science and Technology, Rolla, MO (United States); OSTI
Nanjing Univ. of Information Science and Technology (China)
Missouri Univ. of Science and Technology, Rolla, MO (United States)

Here this paper investigates how the market impact of electricity merchants and uncertainty of wind generation affect their co-optimized scheduling policy, specifically for merchants who have both energy storage and wind plants. In the existing literature, merchants' trading actions are usually assumed not to affect market prices; however, a large-scale energy storage merchant's actions can affect market prices. To this end, we approximate the electricity price by a linear function of the quantity of power traded by the merchant in the reward function to achieve decision-making incorporating the market impact. This paper utilizes the dynamic programming approach to analyze merchants' optimal multi-period decision-making incorporating market impact, uncertain wind generation, and energy storage constraints. First, our results demonstrate that for a merchant with co-located energy storage facilities and wind power plants, the energy storage's feasible state of charge (SOC) range can be segmented into four possible sub-ranges by three analytically developed SOC reference points. The unique optimal trading decision can be achieved by comparing the current energy inventory and the SOC references of the next period. Second, our results show that market impact and uncertainties substantially change the optimal storage scheduling policy by impacting the values of the reference points. To mitigate the negative effect of the merchant's market impact on buying and selling actions, the merchant may reduce the amount of generating or pumping electricity each period to maximize profit. Moreover, we identify and investigate the trade-off between market price and transaction quantity. Our findings provide co-optimized scheduling guidance for electricity merchants with co-located energy storage and renewable power plants systems.

View Accepted Manuscript (DOE)

Research Organization:: Univ. of Missouri, Columbia, MO (United States)

Sponsoring Organization:: USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Water Power Technologies Office

Grant/Contract Number:: EE0008781

OSTI ID:: 1977115

Alternate ID(s):: OSTI ID: 1962289

Journal Information:: Journal of Energy Storage, Journal Name: Journal of Energy Storage Journal Issue: C Vol. 53; ISSN 2352-152X

Publisher:: ElsevierCopyright Statement

Country of Publication:: United States

Language:: English

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Economic dispatch for electricity merchant with energy storage and wind plant: State of charge based decision making considering market impact and uncertainties

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