Enhancing the risk-oriented participation of wind power plants in day-ahead, balancing, and hydrogen markets with shared multi-energy storage systems
Year: 2024
Type: article
Abstract: Addressing the escalating demand for renewable energy resources (RES) as a solution to environmental concerns and fossil fuel dependency, the need for efficient energy storage systems and balancing mechanisms to mitigate the inherent uncertainty in RES output has become imperative. However, the feasibility of providing dedicated storage units to RES owners is often challenging. Moreover, the growing interest in hydrogen utilization adds another layer of complexity for the optimal decision making for the operation of the system considering various carriers of energy. In light of these challenges, this paper proposes a groundbreaking bidding strategy that enables wind farms to seamlessly participate in day-ahead (DA), balancing, and hydrogen markets, leveraging the advantages of shared multi-energy storage (SMES) systems. These SMES systems, comprising both batteries and hydrogen storage units, can be rented out to RES owners, offering a cost-effective and practical solution. By employing effective wind farm management techniques and optimizing the utilization of SMES resources, an innovative bidding strategy is formulated for electrical DA markets, real-time balancing markets, and the DA hydrogen market. Furthermore, this study incorporates risk-management techniques using conditional value at risk (CVaR) analysis, catering to various risk-aversion parameters. This comprehensive analysis sheds light on the outcomes of different strategies and ensures robust decision-making. Additionally, the Dantzig-Wolfe Decomposition (DWD) approach is employed as a decentralized framework to mitigate complexity and enhance data privacy. The problem at hand is mathematically formulated as a mixed-integer linear program (MILP), and the GAMS software, along with the powerful CPLEX solver, is utilized for simulations and to validate the efficacy of the proposed framework. Through rigorous experimentation and analysis, this paper offers valuable insights into the risk-oriented participation of wind power plants in multiple energy markets, paving the way for a sustainable and resilient energy landscape.
Source: Journal of Energy Storage
Language: English
Subfield: Electrical and Electronic Engineering
Field: Engineering
Domain: Physical Sciences
Open Access status: hybrid
Estimated APC paid: $3,030
OpenAlex ID: W4405371574