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Risk-involved optimal operating strategy of a hybrid power generation company: A mixed interval-CVaR model

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  • Khaloie, Hooman
  • Anvari-Moghaddam, Amjad
  • Contreras, Javier
  • Siano, Pierluigi

Abstract

In this paper, a hybrid power generation company consisting of a concentrated solar power unit, wind turbines, a battery system, and a demand response provider is established to take part in electricity markets. The operating strategy of the hybrid power generation company in day-ahead and adjustment (intraday) markets is determined based on their coordinated operation. To tackle the intrinsic uncertainties, for the first time, a mixed stochastic-interval model is proposed which addresses the uncertainty in demand response and solar energy via interval optimization. The examined problem is formulated as a multi-objective optimization problem in which the risk of both stochastic and interval parameters can be involved. On this basis, the proposed operating strategy covers three objective functions, namely, expected radius and midpoint of the hybrid power generation company's profit together with the conditional value-at-risk. Accordingly, the normal boundary intersection and lexicographic optimization techniques are utilized to derive feasible solutions. Lastly, numerical results are presented and the performance of the proposed framework is investigated. The results indicate that the suggested model can be efficiently used to handle the decision-maker's preference over interval and stochastic parameters, and the risk criterion associated with interval parameters becomes larger as the forecasting errors increase.

Suggested Citation

  • Khaloie, Hooman & Anvari-Moghaddam, Amjad & Contreras, Javier & Siano, Pierluigi, 2021. "Risk-involved optimal operating strategy of a hybrid power generation company: A mixed interval-CVaR model," Energy, Elsevier, vol. 232(C).
    • Handle: RePEc:eee:energy:v:232:y:2021:i:c:s0360544221012238
    DOI: 10.1016/j.energy.2021.120975
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