Summary
This paper presents the optimal sizing and operation of battery storage (BS) using artificial bee colony (ABC) to maximize the revenue in a hybrid power system (HPS). The HPS consists of a wind plant (WP), hydro plant (HP), and BS integrated to main grid. Two diverse wind scenarios, namely moderate and abundant wind scenarios, are considered, in which wind speed remains in the range of 2 to 8 and 10 to 18 m/second, at majority of the hours in a day, respectively. The problem is divided into 2 stages. In stage I, the optimal sizing of BS for the installed WP capacity is performed considering various elements and operational costs of HPS with appropriate system constraints. A priority‐based power utilization scheme is used as WP, HP, and then BS to size the BS. The stage II optimizes the BS operation to maximize the HPS revenue with additionally considering BS operational costs and its aging constraint using the results of stage I as input data. And, the BS is considered as a time‐dependent source by continuously adapting to the market bids, working on the principle of buy low and sell high. The results revealed that optimal BS size varies from 20% to 40% and 50% to 65% of WP capacity for moderate and abundant wind scenarios, subsequently and efficient optimized operation of BS with its operational constraints. The viability of ABC technique is demonstrated using the fmincon's interior point method (IPM) of MATLAB® optimization toolbox, which is a numerical technique.