Study and Analysis of the Impacts of Wind Energy and Energy Storage Systems in Competitive Power Market

Abstract

newline In the current scenario of increasing demand for electricity, renewable energy sources are newlineone of the most promising options for electricity generation due to their environmentally newlinefriendly nature. Among the renewable energy sources, wind and solar energy are newlineconsidered mature technologies for electricity generation. These renewable energy sources newlinemostly suffer from their intermittent and fluctuating nature, which causes risk in the system newlineand requires an optimal bidding strategy for making a profit in the electricity market and newlineanalysis of imbalances that occur in the system. newlineIn this research work, wind energy integrated systems are considered for economic newlinerisk analysis, the formulation of an optimal bidding strategy, and imbalance cost newlinecalculation and its mitigation. newlineInitially, a thorough literature survey was carried out in the areas of risk in newlinerenewable energy integrated power systems, optimal bidding strategy for renewable newlinesources participating in the deregulated electricity market and imbalance cost mitigation of newlinerenewable energy sources primarily comprised of wind and solar. Economic risk is newlineassessed for wind energy integrated systems based on different system stages, different newlineconfidence levels (i.e., 95% and 99%) of the risk assessment tool as measured by the value newlineat risk (VaR) and conditional value at risk (CVaR), and different optimization algorithms newlinechosen for an optimal power flow solution, namely sequential quadratic programming newline(SQP), artificial bee colony (ABC), and moth flame optimization (MFO) algorithm. newlineVariation in economic risk with respect to the different ratings of wind farm and pumped newlinehydro storage (PHS) has also been included in this analysis. The obtained results indicates newlinethat the risk value increases when accuracy or confidence level or both increases. The risk newlineis lower in the results obtained using the MFO algorithm compared to ABC, and SQP. A newlinehigher rating of a wind farm and PHS has lower risk values during peak hours and more newlinerisk during off-peak