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On maximizing profit of wind-battery supported power station based on wind power and energy price forecasting

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  • Khalid, Muhammad
  • Aguilera, Ricardo P.
  • Savkin, Andrey V.
  • Agelidis, Vassilios G.

Abstract

This paper proposes a framework to develop an optimal power dispatch strategy for grid-connected wind power plants containing a Battery Energy Storage System (BESS). Considering the intermittent nature of wind power and rapidly varying electricity market price, short-term forecasting of these variables is used for efficient energy management. The predicted variability trends in market price assist in earning additional income which subsequently increase the operational profit. Then on the basis of income improvement, optimal capacity of the BESS can be determined. The proposed framework utilizes Dynamic Programming tool which can incorporate the predictions of both wind power and market price simultaneously as inputs in a receding horizon approach. The proposed strategy is validated using real electricity market price and wind power data in different scenarios of BESS power and capacity. The obtained results depict the effectiveness of the strategy to help power system operators in ensuring economically optimal energy dispatch. Moreover, the results can aid power system planners in the selection of optimal BESS capacity for given power ratings in order to maximize their operational profits.

Suggested Citation

  • Khalid, Muhammad & Aguilera, Ricardo P. & Savkin, Andrey V. & Agelidis, Vassilios G., 2018. "On maximizing profit of wind-battery supported power station based on wind power and energy price forecasting," Applied Energy, Elsevier, vol. 211(C), pages 764-773.
    • Handle: RePEc:eee:appene:v:211:y:2018:i:c:p:764-773
    DOI: 10.1016/j.apenergy.2017.11.061
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    14. Song, Ziyou & Feng, Shuo & Zhang, Lei & Hu, Zunyan & Hu, Xiaosong & Yao, Rui, 2019. "Economy analysis of second-life battery in wind power systems considering battery degradation in dynamic processes: Real case scenarios," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    15. Li, Yang & Vilathgamuwa, Mahinda & Choi, San Shing & Farrell, Troy W. & Tran, Ngoc Tham & Teague, Joseph, 2019. "Development of a degradation-conscious physics-based lithium-ion battery model for use in power system planning studies," Applied Energy, Elsevier, vol. 248(C), pages 512-525.
    16. Muhammad Khalid, 2019. "A Review on the Selected Applications of Battery-Supercapacitor Hybrid Energy Storage Systems for Microgrids," Energies, MDPI, vol. 12(23), pages 1-34, November.
    17. Facci, Andrea L. & Ubertini, Stefano, 2018. "Analysis of a fuel cell combined heat and power plant under realistic smart management scenarios," Applied Energy, Elsevier, vol. 216(C), pages 60-72.
    18. Abdul Rauf & Mahmoud Kassas & Muhammad Khalid, 2022. "Data-Driven Optimal Battery Storage Sizing for Grid-Connected Hybrid Distributed Generations Considering Solar and Wind Uncertainty," Sustainability, MDPI, vol. 14(17), pages 1-27, September.
    19. Ramin Sakipour & Hamdi Abdi, 2020. "Optimizing Battery Energy Storage System Data in the Presence of Wind Power Plants: A Comparative Study on Evolutionary Algorithms," Sustainability, MDPI, vol. 12(24), pages 1-21, December.
    20. Li, Yang & Vilathgamuwa, Mahinda & Choi, San Shing & Xiong, Binyu & Tang, Jinrui & Su, Yixin & Wang, Yu, 2020. "Design of minimum cost degradation-conscious lithium-ion battery energy storage system to achieve renewable power dispatchability," Applied Energy, Elsevier, vol. 260(C).
    21. Wenhao Zhuo & Andrey V. Savkin, 2019. "Profit Maximizing Control of a Microgrid with Renewable Generation and BESS Based on a Battery Cycle Life Model and Energy Price Forecasting," Energies, MDPI, vol. 12(15), pages 1-17, July.
    22. Loukatou, Angeliki & Johnson, Paul & Howell, Sydney & Duck, Peter, 2021. "Optimal valuation of wind energy projects co-located with battery storage," Applied Energy, Elsevier, vol. 283(C).
    23. Fan, Feilong & Huang, Wentao & Tai, Nengling & Zheng, Xiaodong & Hu, Yan & Ma, Zhoujun, 2018. "A conditional depreciation balancing strategy for the equitable operation of extended hybrid energy storage systems," Applied Energy, Elsevier, vol. 228(C), pages 1937-1952.
    24. Khaloie, Hooman & Abdollahi, Amir & Shafie-khah, Miadreza & Anvari-Moghaddam, Amjad & Nojavan, Sayyad & Siano, Pierluigi & Catalão, João P.S., 2020. "Coordinated wind-thermal-energy storage offering strategy in energy and spinning reserve markets using a multi-stage model," Applied Energy, Elsevier, vol. 259(C).

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