Optimal Sizing of Energy Storage Systems for the Energy Procurement Problem in Multi-Period Markets under Uncertainties

Abstract

Abstract:In deregulated electricity markets, minimizing the procurement costs of electricity is a critical problem for procurement agencies (PAs). However, uncertainty is inevitable for PAs and includes multiple factors such as market prices, photovoltaic system (PV) output and demand. This study focuses on settlements in multi-period markets (a day-ahead market and a real-time market) and the installation of energy storage systems (ESSs). ESSs can be utilized for time arbitrage in the day-ahead market and to reduce the purchasing/selling of electricity in the real-time market. However, the high costs of an ESS mean the size of the system needs to be minimized. In addition, when determining the size of an ESS, it is important to identify the size appropriate for each role. Therefore, we employ the concept of a "slow" and a "fast" ESS to quantify the size of a system's role, based on the values associated with the various uncertainties. Because the problem includes nonlinearity and non-convexity, we solve it within a realistic computational burden by reformulating the problem using reasonable assumptions. Therefore, this study identifies the optimal sizes of ESSs and procurement, taking into account the uncertainties of prices in multi-period markets, PV output and demand.

An Artificial Intelligence Solution for Electricity Procurement in Forward Markets

“…Two possibilities are offered to the retailer for its electricity procurement task: directly purchasing energy from generation companies and buying electricity on the spot market. Article [9] tackles a slightly different aspect of the electricity procurement problem as it studies how to size and use energy storage systems to minimise the procurement costs of electricity. The study focuses on short-term energy procurement by considering both the day-ahead market and the real-time market.…”

A Stochastic Model Predictive Control Approach for Joint Operational Scheduling and Hourly Reconfiguration of Distribution Systems

“…The intermittent natural behavior of RESs may endanger the security and reliability of the power system. In [1,2], the Energy Storage Systems (ESSs) were implemented in the distribution system as a suitable solution for compensating these unexpected power fluctuations. In [3], a stochastic energy management system including RESs was proposed.…”