Optimisation and analysis of battery storage integrated into a wind power plant participating in a wholesale electricity market with energy and ancillary services

Naemi, Mostafa; Davis, Dominic; Brear, Michael J.

doi:10.1016/j.jclepro.2022.133909

Cited by 20 publications

(15 citation statements)

References 31 publications

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“…A multi-objective three-level model, employing a multi-objective genetic algorithm, has been used to determine the optimal BESS capacity providing a methodology for incorporating energy storage into Renewable Energy systems to enhance ancillary service provision [46]. Also, the optimal performance of a wind farm with integrated battery storage in a wholesale electricity market has been conducted focusing on maximizing the Net Present Value (NPV) considering participation in energy and Frequency Control Ancillary Services (FCAS) markets and accounting for imperfect generation forecasts [47].…”

Section: Ancillary Servicesmentioning

confidence: 99%

Review on Economic Analysis of Grid-tied Battery Storage Systems and Optimization Strategies

Windhula Gammanpila,

Nadika Jayasooriya,

A.H.T. Shyam Kularathna

2024

CONTRE

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This comprehensive review paper provides an in-depth exploration of the landscape of energy management strategies within the context of emerging energy markets. It underscores the significance of effective energy management and optimization, particularly in light of the surging integration of renewable energy sources, growing sustainability concerns, and the dynamic shifts within the energy sector. This review extensively analyses three fundamental domains: electricity demand estimation, battery storage systems, and energy arbitrage methodologies placing a significant emphasis on the body of the research related to electricity storage optimization.Furthermore, it delves into the widespread strategies that are adopted in battery storage systems, which have assumed a pivotal role in energy storage and the equilibrium of supply and demand in the modern energy landscape. Nevertheless, amidst this extensive examination, a considerable research gap arises, specifically highlighting the lack of dedicated studies addressing energy arbitrage methods tailored to the unique attributes of emerging energy markets. This gap is particularly prominent in the context of Sri Lanka's growing energy market, where the prominence of renewable energy sources is on the rise.The review underscores that in order to fully harness the vast potential of renewable resources and optimize energy supply within this distinctive setting, it is crucial to develop and implement customized energy arbitrage strategies. These strategies should be designed to accommodate the evolving energy dynamics and the integration of renewable energy, that would thus enable energy markets to function effectively while maximizing economic benefits. Therefore, as the global energy landscape continues to transform, with a growing focus on sustainability and renewable energy, this paper sheds light on the need for innovative and tailored energy solutions in emerging markets.

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Section: Ancillary Servicesmentioning

confidence: 99%

Review on Economic Analysis of Grid-tied Battery Storage Systems and Optimization Strategies

Windhula Gammanpila,

Nadika Jayasooriya,

A.H.T. Shyam Kularathna

2024

CONTRE

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“…While existing literature has explored the strategic behavior of RE in the context of market equilibrium, it has primarily been confined to strategic pricing, often formulated within a bilevel modeling framework that includes an upper-level RE profit maximization model and a lowerlevel market clearing model (Ruiz et al, 2012;Kazempour and Zareipour, 2014;Hartwig and Kockar, 2016;Zou et al, 2016;Heredia et al, 2018;Wang et al, 2018;Guo et al, 2020;Huang et al, 2021;Dai et al, 2022;Naemi et al, 2022;Wang et al, 2022;Zhang et al, 2023a;Zhang et al, 2023b). Commonly, the Karush-Kuhn-Tucker (KKT) conditions (Kazempour et al, 2012;Zeynali et al, 2022) are employed to recast the bilevel problem into a single-level nonlinear framework, namely a mathematical problem with equilibrium constraints (MPEC) (Guo et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…However, these studies have not addressed the role of ES systems in shaping the strategic behavior of RE generators. A few works, such as (Naemi et al, 2022), have investigated the optimization of battery storage in wind power plants within wholesale markets, but without considering strategic pricing implications.…”

Section: Introductionmentioning

confidence: 99%

“…While these studies (Ruiz et al, 2012;Kazempour and Zareipour, 2014;Hartwig and Kockar, 2016;Zou et al, 2016;Heredia et al, 2018;Wang et al, 2018;Guo et al, 2020;Huang et al, 2021;Dai et al, 2022;Naemi et al, 2022;Wang et al, 2022;Zhang et al, 2023a;Zhang et al, 2023b) advance the modeling of strategic pricing and market behaviors for the alliance of REs and ESs, they conventionally treat the variable power output constraints of RE resources as fixed parameters. This simplification overlooks the dynamic nature of RE outputs influenced by the integration of ES technologies.…”

Section: Introductionmentioning

confidence: 99%

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Market equilibrium with strategic pricing and strategic constraints in renewable energy: the role of private energy storage

Xiao,

Meng,

et al. 2024

Front. Energy Res.

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With the increasing prevalence of renewable energy (RE) companies equipped with private energy storage (ES) systems, a dual capability emerges to offer strategic pricing and strategic constraints in market competition. Specifically, these RE companies can strategically leverage their own private ESs to modulate the variability of RE output limits and introduce modified constraints within the market. To examine these new strategic behaviors and the resulting market equilibria, we introduce an innovative bilevel strategic behavior model. The upper level of the model delineates the strategy for RE profit maximization through the imposition of strategic constraints and pricing schemes, while the lower level calculates the revenue outcomes for all entities in the day-ahead energy market clearing. The integration of the bilevel models from all strategic entities leads to the formulation of a new equilibrium problem with equilibrium constraints (EPEC), the solution of which indicates a novel market equilibrium. The impacts of these market equilibria on critical system operation metrics are then evaluated across two representative market mechanisms. Our numerical experiments reveal that RE exhibits low sensitivity to the private ES’s cost, suggesting that the behavior of imposing strategic constraints may be widespread among RE companies owning private ESs. Furthermore, the introduction of strategic constraints enhances the competitiveness of RE, significantly affecting social welfare, energy pricing, and RE integration rate. The study concludes with insights that could inform practical market transactions and system operations.

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“…Furthermore, the optimization of mobile energy storage charging and discharging was deliberated, with a focus on renewable energy consumption and enhancing power supply quality. This paper's primary contributions included a theoretical foundation and practical recommendations for the best possible scheduling and distribution of mobile energy storage [6]. Wang et al (2022) concentrated on the complete life cycle economic assessment of energy storage.…”

Section: Introductionmentioning

confidence: 99%

Optimization of Frequency Modulation Energy Storage Configuration in Power Grid Based on Equivalent Full Cycle Model

Huang,

Zheng,

et al. 2024

Energies

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This paper aims to meet the challenges of large-scale access to renewable energy and increasingly complex power grid structure, and deeply discusses the application value of energy storage configuration optimization scheme in power grid frequency modulation. Based on the equivalent full cycle model and a large number of actual operation data, various energy storage technologies are technically analyzed, and the economic and environmental performance of different energy storage configuration schemes are comprehensively evaluated. On this basis, this paper puts forward a set of efficient and economical energy storage configuration optimization strategies to meet the demand of power grid frequency modulation and promote the wide application of energy storage technology. After an in-depth analysis, it is found that the optimized energy storage configuration scheme is excellent in technology, economy, and environmental protection. Specifically, in terms of technical performance, the optimization scheme has significantly improved key indicators such as energy storage efficiency, capacity and power, and response speed, which can better meet the requirements of power grid frequency modulation. Through the verification of actual operation data, it is found that the overall efficiency of the optimized energy storage configuration scheme is above 55%, which is helpful to the stability and efficiency of power grid frequency modulation. In terms of economic performance, although the initial investment cost of the optimization scheme may be high, it is found that it has good economy through the evaluation of long-term operation benefits. Considering that the energy storage system can reduce the operating cost of the power grid, improve the energy utilization rate, and achieve the optimization of cost-effectiveness in the long run, this scheme is economically feasible and attractive. In terms of environmental performance, the optimization scheme effectively reduces the negative impact on the environment by improving energy storage efficiency, reducing emissions, and optimizing resource utilization. This is not only conducive to the sustainable development of the power grid but also in line with the current global trend of promoting green and low-carbon transformation. To sum up, this paper not only provides an efficient and economical energy storage allocation optimization strategy for power grid frequency modulation but also provides a scientific basis for relevant decision-making departments. By promoting the practical application and development of energy storage technology, this paper is helpful to improve the frequency modulation ability of power grid, optimize energy structure, and reduce environmental pollution, and thus achieve the goal of sustainable energy development. The data results and in-depth analysis of this paper provide strong support for the practical application of energy storage configuration optimization scheme and also provide important reference for the further innovation and development of energy storage technology.

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Optimisation and analysis of battery storage integrated into a wind power plant participating in a wholesale electricity market with energy and ancillary services

Cited by 20 publications

References 31 publications

Review on Economic Analysis of Grid-tied Battery Storage Systems and Optimization Strategies

Review on Economic Analysis of Grid-tied Battery Storage Systems and Optimization Strategies

Market equilibrium with strategic pricing and strategic constraints in renewable energy: the role of private energy storage

Optimization of Frequency Modulation Energy Storage Configuration in Power Grid Based on Equivalent Full Cycle Model

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