TY - JOUR
T1 - Offering and Bidding for a Wind Producer Paired with Battery and CAES Units Considering Battery Degradation
AU - Khaloie, Hooman
AU - Anvari-Moghaddam, Amjad
AU - Contreras, Javier
AU - Toubeau, Jean-François
AU - Siano, Pierluigi
AU - Vallée, François
PY - 2022
Y1 - 2022
N2 - This paper presents a stochastic framework for offering and bidding strategies of a hybrid power generation system (HPGS) with a wind farm and two types of energy storage facilities, i.e., compressed air energy storage (CAES) and battery energy storage (BES) systems. The model considers the participation of the HPGS in consecutive electricity markets, i.e., day-ahead (DA) and intraday markets. To better address the proposed trading strategy problem, the BES degradation cost is also incorporated into the model. Furthermore, a mechanism based on energy procurement from demand response resources (DRRs) in the intraday demand response exchange (IDREX) market for the HPGS is also established to offset unexpected energy imbalances effectively. The suggested offering and bidding strategy is formulated as a three-stage stochastic programming problem incorporating a risk-alleviating index, namely, the conditional value-at-risk (CVaR). Results from several simulations indicate considerable profit gain and risk reduction achieved by the suggested offering and bidding framework.
AB - This paper presents a stochastic framework for offering and bidding strategies of a hybrid power generation system (HPGS) with a wind farm and two types of energy storage facilities, i.e., compressed air energy storage (CAES) and battery energy storage (BES) systems. The model considers the participation of the HPGS in consecutive electricity markets, i.e., day-ahead (DA) and intraday markets. To better address the proposed trading strategy problem, the BES degradation cost is also incorporated into the model. Furthermore, a mechanism based on energy procurement from demand response resources (DRRs) in the intraday demand response exchange (IDREX) market for the HPGS is also established to offset unexpected energy imbalances effectively. The suggested offering and bidding strategy is formulated as a three-stage stochastic programming problem incorporating a risk-alleviating index, namely, the conditional value-at-risk (CVaR). Results from several simulations indicate considerable profit gain and risk reduction achieved by the suggested offering and bidding framework.
KW - Battery Energy Storage System (BESS)
KW - Compressed Air Energy Storage (CAES)
KW - Electricity Market
KW - Offering and bidding strategies
KW - Wind Farm
UR - http://www.scopus.com/inward/record.url?scp=85118336985&partnerID=8YFLogxK
U2 - 10.1016/j.ijepes.2021.107685
DO - 10.1016/j.ijepes.2021.107685
M3 - Journal article
SN - 0142-0615
VL - 136
SP - 1
EP - 11
JO - International Journal of Electrical Power & Energy Systems
JF - International Journal of Electrical Power & Energy Systems
M1 - 107685
ER -