Journal article
Optimal offering and operating strategies for wind-storage systems with linear decision rules
Tsinghua University1
Department of Applied Mathematics and Computer Science, Technical University of Denmark2
Department of Electrical Engineering, Technical University of Denmark3
Center for Electric Power and Energy, Centers, Technical University of Denmark4
Energy Analytics and Markets, Center for Electric Power and Energy, Centers, Technical University of Denmark5
CITIES - Centre for IT-Intelligent Energy Systems, Centers, Technical University of Denmark6
The participation of wind farm-energy storage systems (WF-ESS) in electricity markets calls for an integrated view of day-ahead offering strategies and real-time operation policies. Such an integrated strategy is proposed here by co-optimizing offering at the day-ahead stage and operation policy to be used at the balancing stage.
Linear decision rules are seen as a natural approach to model and optimize the real-time operation policy. These allow enhancing profits from balancing markets based on updated information on prices and wind power generation. Our integrated strategies for WF-ESS in electricity markets are optimized under uncertainty in both wind power and price predictions. The resulting stochastic optimization problem readily yields optimal offers and linear decision rules.
By adding a risk-aversion term in form of conditional value at risk into the objective function, the optimization model additionally provides flexibility in finding a trade-off between profit maximization and risk management. Uncertainty in wind power generation, as well as day-ahead and balancing prices, takes the form of scenario sets, permitting to reformulate the optimization problem as a linear program.
Case studies validate the effectiveness of the strategy proposed by highlighting and quantifying benefits w.r.t. other existing strategies.
| Language: | English |
|---|---|
| Publisher: | IEEE |
| Year: | 2016 |
| Pages: | 4755-64 |
| ISSN: | 15580679 and 08858950 |
| Types: | Journal article |
| DOI: | 10.1109/TPWRS.2016.2521177 |
| ORCIDs: | Pinson, Pierre |
Bidding strategy Electricity markets Energy storage system Linear decision rules Real-time operation Wind farm
Electricity supply industry Optimization Real-time systems Stochastic processes Uncertainty WF-ESS Wind forecasting Wind power generation balancing market conditional value at risk day-ahead optimal offering strategy electricity market electricity markets energy storage system linear decision rule linear decision rules linear program linear programming objective function optimal operating strategy power generation economics power markets profit maximization profitability real-time operation real-time operation policy risk management stochastic optimization problem stochastic programming wind farm wind farm-energy storage system wind power generation wind power plants wind storage system
