PROJECT TITLE :

Strategic scheduling of energy storage for load serving entities in locational marginal pricing market

ABSTRACT:

Price-effective approaches of storing electrical energy on a large-scale can facilitate the grid operate flexibly and reliably. Public utility commissions read energy storage (ES) as a important however complementary part of alternative clean technologies such as renewable generation. As a coherent framework is being arranged to increase the penetration of renewables in total electricity generation, load serving entities (LSEs) have been inspired to obtain ES systems to hedge against the intermittence and uncertainty of renewable power such as wind. Owing to the increasing penetration of wind generation, it becomes a lot of advanced for LSEs to get a deterministic ES scheduling decision, i.e. charging/discharging portfolio. To address this challenge, a bi-level strategic scheduling model is proposed in that the primary objective is to maximise the LSE's profit by optimally scheduling ES charging/discharging profile. The sub-downside is Freelance System Operator's (ISO's) economic dispatch for generation cost minimisation, assuming foreseeable impact in market-clearing worth from ES. This bi-level model is converted to a stochastic mathematic programme with equilibrium constraints by recasting the lower-level downside as its Karush-Kuhn-Tucker optimality conditions. Numerical examples primarily based on the PJM five-bus and IEEE 118- bus systems are presented to demonstrate and validate the proposed approach.