In an isolated power grid or a micro-grid with a small carbon footprint, the penetration of renewable energy is usually high. In such power grids, energy storage is important to guarantee an uninterrupted and stable power supply for end users. Different types of energy storage have different characteristics, including their round-trip efficiency, power and energy rating, energy loss over time, and investment and maintenance costs. In addition, the load characteristics and availability of different types of renewable energy sources vary in different geographic regions and at different times of year. Therefore joint capacity optimization for multiple types of energy storage and generation is important when designing this type of power systems. In this paper, we formulate a cost minimization problem for storage and generation planning, considering both the initial investment cost and operational maintenance cost, and propose a distributed optimization framework to overcome the difficulty brought about by the large size of the optimization problem. The results will help in making decisions on energy storage and generation capacity planning in future decentralized power grids with high renewable penetrations.
There have been several works on optimization with energy storages and renewable generation, and we briefly review some of them here. In @cite_2 , the authors investigated the combined optimization of a wind farm and a pumped storage facility from the perspective of a generation company, using a two-step stochastic optimization approach. The optimization produces optimal bids for the day-ahead spot market, and optimal operation strategies of the facilities. The optimal planning of generation and energy storage capacity was not considered. Zhou @cite_4 proposed a composite energy storage system that contains both high energy density storage and high power density storage. The proposed power converter configuration enables actively distributing demands among different energy storages. Brown provided an economical analysis of the benefits of having pumped storage in a small island system with abundant renewable energy, and proposed to find the optimal pumped storage capacity through linear programming. In @cite_5 , the authors considered optimizing the rating of energy storage in a wind-diesel isolated grid, and demonstrated that high wind penetration potentially results in significant cost savings in terms of fuel and operating costs.
@cite_5 @cite_4 @cite_2
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One of the main characteristics of wind power is the inherent variability and unpredictability of the generation source, even in the short-term. To cope with this drawback, hydro pumped-storage units have been proposed in the literature as a good complement to wind generation due to their ability to manage positive and negative energy imbalances over time. This paper investigates the combined optimization of a wind farm and a pumped-storage facility from the point of view of a generation company in a market environment. The optimization model is formulated as a two-stage stochastic programming problem with two random parameters: market prices and wind generation. The optimal bids for the day-ahead spot market are the ldquohere and nowrdquo decisions while the optimal operation of the facilities are the recourse variables. A joint configuration is modeled and compared with an uncoordinated operation. A realistic example case is presented where the developed models are tested with satisfactory results. Wind-diesel systems represent a proactive step towards sustainable remote communities. However, for high ratios of wind energy, the necessity of a dump load and the diesel operating constraints need to be considered. Energy storage systems offer a means of optimizing energy use and further reducing consumption of diesel fuel. This paper proposes a methodology for storage sizing based on stochastic optimization. The problem is formulated and solved using representative data. The dependence of storage sizing and the cost of delivered energy on wind penetration levels, storage efficiency, and diesel operating strategies are considered. Results demonstrate that for high wind penetration, the availability of storage, together with an appropriate diesel operating approach, can result in significant cost savings in terms of fuel and operating costs. In an isolated power grid or a micro-grid with a small carbon footprint, the penetration of renewable energy is usually high. In such power grids, energy storage is important to guarantee an uninterrupted and stable power supply for end users. Different types of energy storage have different characteristics, including their round-trip efficiency, power and energy rating, self-discharge, and investment and maintenance costs. In addition, the load characteristics and availability of different types of renewable energy sources vary in different geographic regions and at different times of year. Therefore joint capacity optimization for multiple types of energy storage and generation is important when designing this type of power systems. In this paper, we formulate a cost minimization problem for storage and generation planning, considering both the initial investment cost and operational maintenance cost, and propose a distributed optimization framework to overcome the difficulty brought about by the large size of the optimization problem. The results will help in making decisions on energy storage and generation capacity planning in future decentralized power grids with high renewable penetrations. This paper focuses on a scenario where a group of independently-operated investor-owned storage units seek to offer both energy and reserve in the day-ahead as well as the hour-ahead markets. We are particularly interested in the case when a significant portion of the power generated in the grid is from wind and other intermittent renewable energy sources. In this regard, we formulate a stochastic programming framework to choose optimal energy and reserve bids for the storage units. Our design takes into account the fluctuating nature of the market prices due to the randomness in the renewable power generation availability. We show that the formulated stochastic program can be converted into a convex optimization problem and therefore it can be solved efficiently. Our simulation results show that our design can assure profitability of the private investment on storage units. In particular, our design results in much higher profit compared to a similar but deterministic design that simply uses the expected values of the price parameters. The fast growing expansion of renewable energy increases the complexities in balancing generation and demand in the power system. The energy-shifting and fast-ramping capability of energy storage has led to increasing interests in batteries to facilitate the integration of renewable resources. In this paper, we present a two-step framework to evaluate the potential value of energy storage in power systems with renewable generation. First, we formulate a stochastic unit commitment approach with wind power forecast uncertainty and energy storage. Second, the solution from the stochastic unit commitment is used to derive a flexible schedule for energy storage in economic dispatch where the look-ahead horizon is limited. Analysis is conducted on the IEEE 24-bus system to demonstrate the benefits of battery storage in systems with renewable resources and the effectiveness of the proposed battery operation strategy. Renewable energy sources have a huge potential to reduce greenhouse gas emissions and decrease the dependence on fossil fuels in the energy sector. However, the energy output of these sources is variable and raises concerns regarding the electric grid reliability. Therefore, the deployment of energy storage would play a key role in enabling the integration of these sources in the electric grid. This paper proposes methods for determining the optimal operation and sizing of energy storage systems. The main purpose of the operation strategy is to maximize the revenues of the renewable farm. The sizing model, on the other hand, has a purpose to minimize the cost of the hybrid system while meeting the service requirement. Both methods were formulated as non-linear programming optimization models. To verify the effectiveness of these methods; case studies have been presented. Finally, this paper proposes an economical analysis to determine the cost added by the storage to each KWh of stored energy. The power spectral density of the output of wind turbines provides information on the character of fluctuations in turbine output. Here both 1-second and 1-hour samples are used to estimate the power spectrum of several wind farms. The measured output power is found to follow a Kolmogorov spectrum over more than four orders of magnitude, from 30 s to 2.6 days. This result is in sharp contrast to the only previous study covering long time periods, published 50 years ago. The spectrum defines the character of fill-in power that must be provided to compensate for wind's fluctuations when wind is deployed at large scale. Installing enough linear ramp rate generation (such as a gas generator) to fill in fast fluctuations with amplitudes of 1 of the maximum fluctuation would oversize the fill-in generation capacity by a factor of two for slower fluctuations, greatly increasing capital costs. A wind system that incorporates batteries, fuel cells, supercapacitors, or other fast-ramp-rate energy storage systems would match fluctuations much better, and can provide an economic route for deployment of energy storage systems when renewable portfolio standards require large amounts of intermittent renewable generating sources. Renewable energy such as solar and wind generation will constitute an important part of the future grid. As the availability of renewable sources may not match the load, energy storage is essential for grid stability. In this paper we investigate the feasibility of integrating solar photovoltaic (PV) panels and wind turbines into the grid by also accounting for energy storage. To deal with the fluctuation in both the power supply and demand, we extend and apply stochastic network calculus to analyze the power supply reliability with various renewable energy configurations. To illustrate the validity of the model, we conduct a case study for the integration of renewable energy sources into the power system of an island off the coast of Southern California. In particular, we asses the power supply reliability in terms of the average Fraction of Time that energy is Not-Served (FTNS). The renewable energy generation such as solar and wind will constitute an important part of the next generation grid. As the variations of renewable sources may not match the time distribution of load, energy storage is essential for grid stability. Supplemented with energy storage, we investigate the feasibility of integrating solar photovoltaic (PV) panels and wind turbines into the grid. To deal with the fluctuation in both the power generation and demand, we borrow the ideas from stochastic network calculus and build a stochastic model for the power supply reliability with different renewable energy configurations. To illustrate the validity of the model, we conduct a case study for the integration of renewable energy sources into the power system of an island off the coast of Southern California. Performance of the hybrid system under study is assessed by employing the stochastic model, e.g., with a set of system configurations, the long-term expected Fraction of Time that energy Not-Served (FTNS) of a given period can be obtained. Electric energy storage devices are prime candidates for demand load management in the smart power grid. In this work, we address the optimal energy storage control problem from the side of the utility operator. The operator controller receives power demand requests with different power requirements and durations that are activated immediately. The controller has access to one energy storage device of finite capacity. The objective is to devise an energy storage control policy that minimizes long-term average grid operational cost. The cost is a convex function of instantaneous power demand that is satisfied from the grid, and it reflects the fact that each additional unit of power needed to serve demands is more expensive as the demand load increases. For the online dynamic control problem, we derive a threshold-based control policy that attempts to maintain balanced power consumption from the grid at all times, in the presence of continual generation and completion of demands. The policy adaptively performs charging or discharging of the storage device. The former increases power consumption from the grid and the latter satisfies part of the grid demand from the stored energy. We prove that the policy is asymptotically optimal as the storage capacity becomes large, and we numerically show that it performs very well even for finite capacity. The off-line problem over a finite time horizon that assumes a priori known power consumption to be satisfied at all times, is formulated and solved with Dynamic Programming. Finally, we show that the model, approach and structure of the optimal policy can be extended to also account for a renewable source that feeds the storage device. Along with the increasing penetration of renewable energy, distribution system power flow may be significantly altered in terms of direction and magnitude. This will make delivering reliable power, on demand, a major challenge. In this paper, a novel battery energy storage system (BESS) based energy acquisition model is proposed for the operation of distribution companies (DISCOs) in regulating price or locational marginal price (LMP) mechanisms, while considering energy provision options within DISCO controlled areas. Based on this new model, a new battery operation strategy is proposed for better utilization of energy storage system (ESS) and mitigation operational risk from price volatility. Meanwhile, optimal sizing and siting decisions for BESS is obtained through a cost-benefit analysis method, which aims at maximizing the DISCO's profit from energy transactions, system planning and operation cost savings. The proposed energy acquisition model and ESS control strategy are verified on a modified IEEE 15-bus distribution network, and risk mitigation is also quantified in two different markets. The promising results show that the capacity requirement for ESS can be reduced and the operational risk can also be mitigated. The penetration of renewable distributed generation (DG) sources has been increased in active distribution networks due to their unique advantages. However, non-dispatchable DGs such as wind turbines raise the risk of distribution networks. Such a problem could be eliminated using the proper application of energy storage units. In this paper, optimal planning of batteries in the distribution grid is presented. The optimal planning determines the location, capacity and power rating of batteries while minimizing the cost objective function subject to technical constraints. The optimal long-term planning is based on the short-term optimal power flow considering the uncertainties. The point estimate method (PEM) is employed for probabilistic optimal power flow. The batteries are scheduled optimally for several purposes to maximize the benefits. A hybrid Tabu search particle swarm optimization (TS PSO) algorithm is used to solve the problem. The numerical studies on a 21-node distribution system show the advantages of the proposed methodology. The proposed approach can also be applied to the realistic sized networks when some sensitive nodes are considered as candidate locations for installing the storage units. One of the most important challenges in smart grid systems is the integration of renewable energy resources into its design. In this paper, two different techniques to mitigate the time-varying and intermittent nature of renewable energy generation are considered. The first one is the use of storage, which smooths out the fluctuations in the renewable energy generation across time. The second technique is the concept of distributed generation combined with cooperation by exchanging energy among the distributed sources. This technique averages out the variation in energy production across space. This paper analyzes the tradeoff between these two techniques. The problem is formulated as a stochastic optimization problem with the objective of minimizing the time average cost of energy exchange within the grid. First, an analytical model of the optimal cost is provided by investigating the steady state of the system for some specific scenarios. Then, an algorithm to solve the cost minimization problem using the technique of Lyapunov optimization is developed, and results for the performance of the algorithm are provided. These results show that in the presence of limited storage devices, the grid can benefit greatly from cooperation, whereas in the presence of large storage capacity, cooperation does not yield much benefit. Further, it is observed that most of the gains from cooperation can be obtained by exchanging energy only among a few energy-harvesting sources. The high variability of renewable energy is a major obstacle toward its increased penetration. Energy storage can help reduce the power imbalance due to the mismatch between the available renewable power and the load. How much can storage reduce this power imbalance? How much storage is needed to achieve this reduction? This paper presents a simple analytic model that leads to some answers to these questions. Considering the multitimescale grid operation, we formulate the power imbalance problem for each timescale as an infinite horizon stochastic control problem and show that a greedy policy minimizes the average magnitude of the residual power imbalance. Observing from the wind power data that in shorter timescales the power imbalance can be modeled as an iid zero-mean Laplace distributed process, we obtain closed form expressions for the minimum cost and the stationary distribution of the stored power. We show that most of the reduction in the power imbalance can be achieved with relatively small storage capacity. In longer timescales, the correlation in the power imbalance cannot be ignored. As such, we relax the iid assumption to a weakly dependent stationary process and quantify the limit on the minimum cost for arbitrarily large storage capacity. Abstract Vehicle-to-grid power (V2G) uses electric-drive vehicles (battery, fuel cell, or hybrid) to provide power for specific electric markets. This article examines the systems and processes needed to tap energy in vehicles and implement V2G. It quantitatively compares today's light vehicle fleet with the electric power system. The vehicle fleet has 20 times the power capacity, less than one-tenth the utilization, and one-tenth the capital cost per prime mover kW. Conversely, utility generators have 10–50 times longer operating life and lower operating costs per kWh. To tap V2G is to synergistically use these complementary strengths and to reconcile the complementary needs of the driver and grid manager. This article suggests strategies and business models for doing so, and the steps necessary for the implementation of V2G. After the initial high-value, V2G markets saturate and production costs drop, V2G can provide storage for renewable energy generation. Our calculations suggest that V2G could stabilize large-scale (one-half of US electricity) wind power with 3 of the fleet dedicated to regulation for wind, plus 8–38 of the fleet providing operating reserves or storage for wind. Jurisdictions more likely to take the lead in adopting V2G are identified. There is growing interest in the use of grid-level storage to smooth variations in supply that are likely to arise with an increased use of wind and solar energy. Energy arbitrage, the process of buying, storing, and selling electricity to exploit variations in electricity spot prices, is becoming an important way of paying for expensive investments into grid-level storage. Independent system operators such as the New York Independent System Operator NYISO require that battery storage operators place bids into an hour-ahead market although settlements may occur in increments as small as five minutes, which is considered near "real-time". The operator has to place these bids without knowing the energy level in the battery at the beginning of the hour and simultaneously accounting for the value of leftover energy at the end of the hour. The problem is formulated as a dynamic program. We describe and employ a convergent approximate dynamic programming ADP algorithm that exploits monotonicity of the value function to find a revenue-generating bidding policy; using optimal benchmarks, we empirically show the computational benefits of the algorithm. Furthermore, we propose a distribution-free variant of the ADP algorithm that does not require any knowledge of the distribution of the price process and makes no assumptions regarding a specific real-time price model. We demonstrate that a policy trained on historical real-time price data from the NYISO using this distribution-free approach is indeed effective. This study proposes a new method for direct generation of synthetic wind power time series for a wind farm. The method combines the random nature of wind with the operational information of the wind turbines (i.e., failure and repair rates). It uses chronological or sequential Monte Carlo Simulation instead of non-sequential one due to its usefulness and flexibility in preserving statistical characteristics of the chronological processes. The validity of the synthetic values generated by the proposed method and the conventional Markov Chain Monte Carlo methods is compared with the measured data in terms of average and variance values, Probability Distribution Function, and Auto-Correlation Function. Due to increasing interest in the use of the storage system in paralleling with wind power generation, a practical application of the proposed method is also included. Optimal sizing of various energy storage technologies is obtained through a cost-benefit analysis in a typical Micro-Grid. In this paper, we consider delay-optimal charging scheduling of the electric vehicles (EVs) at a charging station with multiple charge points. The charging station is equipped with renewable energy generation devices and can also buy energy from power grids. The uncertainty of the arrival of the EV, the intermittence of the renewable energy, and the variation of the grid power price are taken into account and described as independent Markov processes. Meanwhile, the required charging energy for each EV is random. The goal is to minimize the mean waiting time for EVs under the long-term constraint on the cost. We propose queue mapping to convert the EV queue to the charging demand queue, and we prove the equivalence between the minimization of the two queues' average length. Then, we focus on the minimization for the average length of the charging demand queue under the long-term cost constraint. We propose a framework of Markov decision process (MDP) to investigate this constrained stochastic optimization problem. The system state includes the charging demand queue length, the charging demand arrival, the energy level in the storage battery of the renewable energy, the renewable energy arrival, and the grid power price. Additionally, the number of charging demands and the allocated energy from the storage battery compose the 2-D policy. We derive two necessary conditions of the optimal policy. Moreover, we discuss the reduction of the 2-D policy to be the number of charging demands only. We give the sets of system states for which charging no demand and charging as many demands as possible are optimal, respectively. Finally, we investigate the proposed policies numerically. Due to its reduced communication overhead and robustness to failures, distributed energy management is of paramount importance in smart grids, especially in microgrids, which feature distributed generation (DG) and distributed storage (DS). Distributed economic dispatch for a microgrid with high renewable energy penetration and demand-side management operating in grid-connected mode is considered in this paper. To address the intrinsically stochastic availability of renewable energy sources (RES), a novel power scheduling approach is introduced. The approach involves the actual renewable energy as well as the energy traded with the main grid, so that the supply-demand balance is maintained. The optimal scheduling strategy minimizes the microgrid net cost, which includes DG and DS costs, utility of dispatchable loads, and worst-case transaction cost stemming from the uncertainty in RES. Leveraging the dual decomposition, the optimization problem formulated is solved in a distributed fashion by the local controllers of DG, DS, and dispatchable loads. Numerical results are reported to corroborate the effectiveness of the novel approach. This paper presents a new method based on the cost-benefit analysis for optimal sizing of an energy storage system in a microgrid (MG). The unit commitment problem with spinning reserve for MG is considered in this method. Time series and feed-forward neural network techniques are used for forecasting the wind speed and solar radiations respectively and the forecasting errors are also considered in this paper. Two mathematical models have been built for both the islanded and grid-connected modes of MGs. The main problem is formulated as a mixed linear integer problem (MLIP), which is solved in AMPL (A Modeling Language for Mathematical Programming). The effectiveness of the approach is validated by case studies where the optimal system energy storage ratings for the islanded and grid-connected MGs are determined. Quantitative results show that the optimal size of BESS exists and differs for both the grid-connected and islanded MGs in this paper.