A profitability investigation into the collaborative operation of wind and underwater compressed air energy storage units in the spot market

Nowadays, the integration of uncertain renewable resources has been accelerated, which encounters the operational scheduling of power system with some challenges for achieving optimal operation schedule. Hence, uncertain resources will be penalized if they create an imbalance in power generation. Both of the positive and negative imbalances will lead to a decrease in the uncertain resources' profitability. In the market environment, when the time is close to the real operation, the excess generation could not be sold. In some markets, the system operator buys the excess renewable generation by penalty factors. Furthermore, the insufficient generation must be compensated through buying from the spot market which has higher prices. The owners of uncertain resources want to have coordinated operation with storage units to mitigate the risk of commitment in the electricity market and to be protected from high prices of the spot market in case of their inaccurate forecasting. Hence, a contract model is proposed to satisfy both renewable and energy storage generating companies. Hence, a state-of-the-art storage technology which is called UWCAES is incorporated. The uncertain resources cannot be effectively profited of participation in the wholesale electricity market without collaborative operation. The results show the effectiveness of the proposed model.