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On the assessment of the impact of a price-maker energy storage unit on the operation of power system: The ISO point of view

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  • Chabok, Hossein
  • Roustaei, Mahmoud
  • Sheikh, Morteza
  • Kavousi-Fard, Abdollah

Abstract

This paper basically concentrates on the impact of a price-maker energy storage unit (PMESU) on the operation of the power system. Recently, energy storage systems (ESSs) have attracted much attention as one of the renewable and pollution-free sources of energy and are applicable due to their exclusive advantages in power systems. In this paper, the ESS considered as a price-maker market player, which attempts to maximize the benefits of its competition in the market environment. The main operation problem of the PMESU represented as a bi-level optimization problem which comprises of nonlinear terms. First, a stochastic-based bidding/offering approach (SBOA) is considered which is less complex and takes lesser time to be solved compared to the MPEC method. Second, conditional Value-at-Risk (CVaR) method is used in order to control the risk of utilizing inoperative scenarios. Finally, the operation problem of the proposed PMESU is formed as a max-min problem in order to analyse the impact of the PMESU in the worst case condition from the perspective of the independent system operator (ISO). In addition, transmission switching (TS) method is utilized to minimize the system operation cost from the ISO point of view. The performance of the proposed method has been evaluated on an IEEE 9-bus test system which shows the authenticity and validity of this work.

Suggested Citation

  • Chabok, Hossein & Roustaei, Mahmoud & Sheikh, Morteza & Kavousi-Fard, Abdollah, 2020. "On the assessment of the impact of a price-maker energy storage unit on the operation of power system: The ISO point of view," Energy, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:energy:v:190:y:2020:i:c:s036054421931919x
    DOI: 10.1016/j.energy.2019.116224
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    References listed on IDEAS

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    Cited by:

    1. Mohamed, Mohamed A. & Jin, Tao & Su, Wencong, 2020. "Multi-agent energy management of smart islands using primal-dual method of multipliers," Energy, Elsevier, vol. 208(C).
    2. Adrian Tantau & András Puskás-Tompos & Laurentiu Fratila & Costel Stanciu, 2021. "Acceptance of Demand Response and Aggregators as a Solution to Optimize the Relation between Energy Producers and Consumers in order to Increase the Amount of Renewable Energy in the Grid," Energies, MDPI, vol. 14(12), pages 1-19, June.
    3. Mohamed, Mohamed A. & Jin, Tao & Su, Wencong, 2020. "An effective stochastic framework for smart coordinated operation of wind park and energy storage unit," Applied Energy, Elsevier, vol. 272(C).
    4. Lu, Xiaoxing & Li, Kangping & Xu, Hanchen & Wang, Fei & Zhou, Zhenyu & Zhang, Yagang, 2020. "Fundamentals and business model for resource aggregator of demand response in electricity markets," Energy, Elsevier, vol. 204(C).

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