Energy Storage for Power System Planning and Operation

3Day‐Ahead Schedule and Bid for a Renewable Energy Generation and Energy Storage System Union

3.1 Introduction

In recent years, much effort has been made around the world to develop renewable energy such as wind and solar energy in response to fossil fuel depletion and environmental problems. However, the uncertainty and fluctuation of wind and solar power have negative effects on secure and stable operation of power systems, which restrains the increase of wind and solar power penetration. Furthermore, the relatively large forecast error has a negative impact on the revenue of renewable generation in electricity markets.

In order to better accommodate wind and solar power, studies have focused on the coordination of energy storage systems (ESS) with renewable energy generation (REG). REG and ESS can form a union, which means they can offer in the day‐ahead stage and get paid as a virtual unit or plant. In this way, their joint power output is more controllable, and it will offset the negative influence caused by forecast errors of REG on power systems. In reference [1], the benefits of the coordination of thermal power plants, wind farms, and an ESS on the system are studied under different seasons, with various power demands and wind power penetrations. The authors of reference [2] formulate a two‐stage stochastic optimization model to maximize the profit of a wind‐storage union under the Spanish power market environment, and the case studies demonstrate that the profit of ...