Market-based hosting capacity maximization of renewable generation in power grids with energy storage integration

Abstract

In an attempt to achieve net zero, the operation and planning of the energy system face techno-economic challenges brought by integrating large-scale distributed energy resources (DERs) with low carbon footprints. Previous work has analyzed the technical challenges including hosting capacity (HC) for DERs. In light of the deregulation of the power industry and the transition to power system with renewables at its center, this article takes the lead to maximizing renewable integration in power grids from a market viewpoint. It solves a significant problem brought forth by the fall in electricity prices, resulting from increasing renewable penetration that jeopardizes investment cost recovery and prevents sustainable grid integration of renewables. To this end, a novel bi-level optimization model is formulated, where the upper-level problem aims to maximize the HC of renewables ensuring the recovery of investment, and the lower-level problem describes the market clearing process considering network constraints. The optimal solution of devised bi-level problem can be found after reformulating it to a single-level mixed-integer linear problem (MILP) using the strong duality theorem and a special ordered set-type 1 (SOS1) founded linearization approach. Case studies confirm the significance of the devised model and quantitatively analyze the impact of different network capacities, renewable subsidies, and energy storage, respectively, on the market-based HC obeying its profitability constraint.

Electricity Trading in Energy Market Integration: A Theoretical Review

“…On the other hand, the nodal model (locational) applies to a market where there is practically no exchange and transactions are managed by operator through a mechanism like auctioning, where individual suppliers submit their offers considering current prices, costs of future investments, and place of energy supply and consumption [43]. In the contemporary world of renewable energy revolution, nodal pricing is being preferred as it implies more generation through renewable sources at a decentralized level [23,44,45].…”

Strategy for Enhancing Hosting Capacity of Distribution Lines Using a Vertical Photovoltaic System

“…To enhance the renewable energy hosting capacity within the power grid, distribution system operators must consider certain scenarios and technologies to improve distribution systems [9]. Additionally, the impact analysis of improving the hosting capacity by considering regulatory relaxations and investment recovery in the power industry has been presented [10]. Studies addressing hosting capacity improvements in distribution system designs related to an increase in PV and electrical vehicle capacity have been reported [11].…”

Increasing Distributed Generation Hosting Capacity Based on a Sequential Optimization Approach Using an Improved Salp Swarm Algorithm

“…On the other hand, a new risk and reliability perspective for HC analysis is proposed in [18] by combining users' voltage sensitivity and reliability analysis in low-voltage networks. To address the HC of the transmission grid for distributed energy sources, the authors of [19] consider transient stability evaluation instead of steady-state analysis, while a market-based approach is proposed in [20], in which a bi-level optimization model is formulated, where both RES recovery investment and market clearing process are considered in order to maximize the HC.…”