Co-optimized trading of hybrid wind power plant with retired EV batteries in energy and reserve markets under uncertainties

Zhan, Sen; Hou, Peng; Enevoldsen, Peter; Yang, Guangya; Zhu, Jiangsheng; Eichman, Joshua D.; Jacobson, Mark Z.

doi:10.1016/j.ijepes.2019.105631

Title: Co-optimized trading of hybrid wind power plant with retired EV batteries in energy and reserve markets under uncertainties

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Abstract

To be competitive in the electricity markets, various technologies have been reported to increase profits of wind farm owners. Combining battery storage system, wind farms can be operated as conventional power plants which promotes the integration of wind power into the power grid. However, high expenses on batteries keep investors away. Retired EV batteries, fortunately, still have enough capacity to be reused and could be obtained at a low price. In this work, a two-stage optimization of a wind energy retired EV battery-storage system is proposed. The economic performance of the proposed system is examined concerning its participation in the frequency containment normal operation reserve (FCR-N) market and the spot market simultaneously. To account uncertainties in the wind farm output, various electricity market prices, and up/down regulation status, a scenario-based stochastic programming method is used. The sizing of the equipment is optimized on top of daily operations of the hybrid system which formulates a mixed-integer linear programming (MILP) problem. Scenarios are generated with the Monte Carlo simulation (MCS) and Roulette Wheel Mechanism (RWM), which are further reduced with the simultaneous backward method (SBM) to increase computational efficiency. A 21 MW wind farm is selected as a case study. Here, themore »« less

Authors:

^[1]; Hou, Peng ^[2]; Enevoldsen, Peter ^[3]; Yang, Guangya ^[1]; Zhu, Jiangsheng ^[2];

^[4]; Jacobson, Mark Z. ^[5]

Technical Univ. of Denmark, Lyngby (Denmark)
SEWPG European Innovation Center (Denmark)
Aarhus Univ. (Denmark)
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Stanford Univ., CA (United States)

Publication Date:: 2019-11-14

Research Org.:: National Renewable Energy Lab. (NREL), Golden, CO (United States)

Sponsoring Org.:: USDOE Office of Energy Efficiency and Renewable Energy (EERE)

OSTI Identifier:: 1579636

Report Number(s):: NREL/JA-5400-75634
Journal ID: ISSN 0142-0615

Grant/Contract Number:: AC36-08GO28308

Resource Type:: Accepted Manuscript

Journal Name:: International Journal of Electrical Power and Energy Systems

Additional Journal Information:: Journal Volume: 117; Journal Issue: C; Journal ID: ISSN 0142-0615

Publisher:: Elsevier

Country of Publication:: United States

Language:: English

Subject:: 17 WIND ENERGY; 24 POWER TRANSMISSION AND DISTRIBUTION; retired EV battery-storage system (RESS); FCR-N market; spot market; MILP

Citation Formats


                    Zhan, Sen, Hou, Peng, Enevoldsen, Peter, Yang, Guangya, Zhu, Jiangsheng, Eichman, Joshua D., and Jacobson, Mark Z.. Co-optimized trading of hybrid wind power plant with retired EV batteries in energy and reserve markets under uncertainties.  United States: N. p., 2019. 
Web.  doi:10.1016/j.ijepes.2019.105631.

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                    Zhan, Sen, Hou, Peng, Enevoldsen, Peter, Yang, Guangya, Zhu, Jiangsheng, Eichman, Joshua D., & Jacobson, Mark Z.. Co-optimized trading of hybrid wind power plant with retired EV batteries in energy and reserve markets under uncertainties.  United States.  https://doi.org/10.1016/j.ijepes.2019.105631

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                    Zhan, Sen, Hou, Peng, Enevoldsen, Peter, Yang, Guangya, Zhu, Jiangsheng, Eichman, Joshua D., and Jacobson, Mark Z.. Thu .  
"Co-optimized trading of hybrid wind power plant with retired EV batteries in energy and reserve markets under uncertainties".  United States.  https://doi.org/10.1016/j.ijepes.2019.105631.  https://www.osti.gov/servlets/purl/1579636.

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@article{osti_1579636,

  title        = {Co-optimized trading of hybrid wind power plant with retired EV batteries in energy and reserve markets under uncertainties},

  author       = {Zhan, Sen and Hou, Peng and Enevoldsen, Peter and Yang, Guangya and Zhu, Jiangsheng and Eichman, Joshua D. and Jacobson, Mark Z.},

  abstractNote = {To be competitive in the electricity markets, various technologies have been reported to increase profits of wind farm owners. Combining battery storage system, wind farms can be operated as conventional power plants which promotes the integration of wind power into the power grid. However, high expenses on batteries keep investors away. Retired EV batteries, fortunately, still have enough capacity to be reused and could be obtained at a low price. In this work, a two-stage optimization of a wind energy retired EV battery-storage system is proposed. The economic performance of the proposed system is examined concerning its participation in the frequency containment normal operation reserve (FCR-N) market and the spot market simultaneously. To account uncertainties in the wind farm output, various electricity market prices, and up/down regulation status, a scenario-based stochastic programming method is used. The sizing of the equipment is optimized on top of daily operations of the hybrid system which formulates a mixed-integer linear programming (MILP) problem. Scenarios are generated with the Monte Carlo simulation (MCS) and Roulette Wheel Mechanism (RWM), which are further reduced with the simultaneous backward method (SBM) to increase computational efficiency. A 21 MW wind farm is selected as a case study. Here, the optimization results show that by integrating with a retired EV battery-storage system (RESS) and a bi-directional inverter, the wind farm can increase its profits significantly when forwarding bids in both of the aforementioned electricity markets.},

  doi          = {10.1016/j.ijepes.2019.105631},

  journal      = {International Journal of Electrical Power and Energy Systems},

  number       = C,

  volume       = 117,

  place        = {United States},

  year         = {2019},

  month        = {11}

}

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