IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i24p9457-d1002528.html
   My bibliography  Save this article

System Profit Improvement of a Thermal–Wind–CAES Hybrid System Considering Imbalance Cost in the Electricity Market

Author

Listed:
  • Mitul Ranjan Chakraborty

    (Department of Electrical Engineering, Siliguri Institute of Technology, Darjeeling 734009, West Bengal, India)

  • Subhojit Dawn

    (Department of Electrical & Electronics Engineering, Velagapudi Ramakrishna Siddhartha Engineering College, Vijayawada 520007, Andhra Pradesh, India)

  • Pradip Kumar Saha

    (Department of Electrical Engineering, Jalpaiguri Government Engineering College, Jalpaiguri 735102, West Bengal, India)

  • Jayanta Bhusan Basu

    (Department of Electrical Engineering, Siliguri Institute of Technology, Darjeeling 734009, West Bengal, India)

  • Taha Selim Ustun

    (Fukushima Renewable Energy Institute, AIST (FREA), Koriyama 963-0298, Japan)

Abstract

Studying a renewable energy integrated power system’s features is essential, especially for deregulated systems. The unpredictability of renewable sources is the main barrier to integrating renewable energy-producing units with the current electrical grid. Due to its unpredictable nature, integrating wind power into an existing power system requires significant consideration. In a deregulated electricity market, this paper examines the implications of wind farm (WF) integration with CAES on electric losses, voltage profile, generation costs, and system economics. Comparative research was done to determine the impact of wind farm integration on regulated and deregulated environments. Four randomly chosen locations in India were chosen for this investigation, together with real-time information on each location’s real wind speed (RWS) and predicted wind speed (PWS). Surplus charge rates and deficit charge rates were created to assess the imbalance cost arising from the discrepancy between predicted and real wind speeds to calculate the system economics. When the effect of imbalance cost is considered, the daily system profit shows a variation of about 1.9% for the locations under study. Customers are always seeking electricity that is dependable, affordable, and efficient due to the reorganization of the power system. As a result, the system security limit could be exceeded or the system might function dangerously. The final section of this paper presents an economic risk analysis using heuristic algorithms such as sequential quadratic programming (SQP), artificial bee colony algorithms (ABC), and moth flame optimization algorithms (MFO). It also discusses how the CAES is used to correct the deviation of WF integration in the real-time electricity market. Economic risk analysis tools include value-at-risk (VaR) and conditional value-at-risk (CVaR). The entire piece of work was validated using a modified IEEE 30-bus test system. This works shows that with a three-fold increase in wind generation, the risk coefficient values improves by 1%.

Suggested Citation

  • Mitul Ranjan Chakraborty & Subhojit Dawn & Pradip Kumar Saha & Jayanta Bhusan Basu & Taha Selim Ustun, 2022. "System Profit Improvement of a Thermal–Wind–CAES Hybrid System Considering Imbalance Cost in the Electricity Market," Energies, MDPI, vol. 15(24), pages 1-25, December.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:24:p:9457-:d:1002528
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/24/9457/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/24/9457/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Umut Ugurlu & Oktay Tas & Aycan Kaya & Ilkay Oksuz, 2018. "The Financial Effect of the Electricity Price Forecasts’ Inaccuracy on a Hydro-Based Generation Company," Energies, MDPI, vol. 11(8), pages 1-19, August.
    2. Pablo David Necoechea-Porras & Asunción López & Juan Carlos Salazar-Elena, 2021. "Deregulation in the Energy Sector and Its Economic Effects on the Power Sector: A Literature Review," Sustainability, MDPI, vol. 13(6), pages 1-23, March.
    3. Gencer, Busra & Larsen, Erik Reimer & van Ackere, Ann, 2020. "Understanding the coevolution of electricity markets and regulation," Energy Policy, Elsevier, vol. 143(C).
    4. Nitesh Kumar Singh & Chaitali Koley & Sadhan Gope & Subhojit Dawn & Taha Selim Ustun, 2021. "An Economic Risk Analysis in Wind and Pumped Hydro Energy Storage Integrated Power System Using Meta-Heuristic Algorithm," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    5. Ganesh Sampatrao Patil & Anwar Mulla & Subhojit Dawn & Taha Selim Ustun, 2022. "Profit Maximization with Imbalance Cost Improvement by Solar PV-Battery Hybrid System in Deregulated Power Market," Energies, MDPI, vol. 15(14), pages 1-21, July.
    6. Graça Gomes, J. & Xu, H.J. & Yang, Q. & Zhao, C.Y., 2021. "An optimization study on a typical renewable microgrid energy system with energy storage," Energy, Elsevier, vol. 234(C).
    7. Mostafa Nasouri Gilvaei & Mahmood Hosseini Imani & Mojtaba Jabbari Ghadi & Li Li & Anahita Golrang, 2021. "Profit-Based Unit Commitment for a GENCO Equipped with Compressed Air Energy Storage and Concentrating Solar Power Units," Energies, MDPI, vol. 14(3), pages 1-20, January.
    8. Shreya Shree Das & Arup Das & Subhojit Dawn & Sadhan Gope & Taha Selim Ustun, 2022. "A Joint Scheduling Strategy for Wind and Solar Photovoltaic Systems to Grasp Imbalance Cost in Competitive Market," Sustainability, MDPI, vol. 14(9), pages 1-22, April.
    9. Murphy, C.A. & Schleifer, A. & Eurek, K., 2021. "A taxonomy of systems that combine utility-scale renewable energy and energy storage technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    10. Afzal S. Siddiqui, Ramteen Sioshansi, and Antonio J. Conejo, 2019. "Merchant Storage Investment in a Restructured Electricity Industry," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    11. Qihui Yu & Li Tian & Xiaodong Li & Xin Tan, 2022. "Compressed Air Energy Storage Capacity Configuration and Economic Evaluation Considering the Uncertainty of Wind Energy," Energies, MDPI, vol. 15(13), pages 1-30, June.
    12. Zhang, M.Y. & Chen, J.J. & Yang, Z.J. & Peng, K. & Zhao, Y.L. & Zhang, X.H., 2021. "Stochastic day-ahead scheduling of irrigation system integrated agricultural microgrid with pumped storage and uncertain wind power," Energy, Elsevier, vol. 237(C).
    13. Ganesh Sampatrao Patil & Anwar Mulla & Taha Selim Ustun, 2022. "Impact of Wind Farm Integration on LMP in Deregulated Energy Markets," Sustainability, MDPI, vol. 14(7), pages 1-20, April.
    14. Dawn, Subhojit & Tiwari, Prashant Kumar & Goswami, Arup Kumar, 2017. "An approach for efficient assessment of the performance of double auction competitive power market under variable imbalance cost due to high uncertain wind penetration," Renewable Energy, Elsevier, vol. 108(C), pages 230-243.
    15. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2019. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Energy Economics, Elsevier, vol. 80(C), pages 1059-1078.
    16. Selvaraju, Ramesh Kumar & Somaskandan, Ganapathy, 2016. "Impact of energy storage units on load frequency control of deregulated power systems," Energy, Elsevier, vol. 97(C), pages 214-228.
    17. Aleksandr Rudkevich & Max Duckworth & Richard Rosen, 1998. "Modeling Electricity Pricing in a Deregulated Generation Industry: The Potential for Oligopoly Pricing in a Poolco," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 19-48.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arup Das & Subhojit Dawn & Sadhan Gope & Taha Selim Ustun, 2022. "A Strategy for System Risk Mitigation Using FACTS Devices in a Wind Incorporated Competitive Power System," Sustainability, MDPI, vol. 14(13), pages 1-21, July.
    2. Mitul Ranjan Chakraborty & Subhojit Dawn & Pradip Kumar Saha & Jayanta Bhusan Basu & Taha Selim Ustun, 2023. "System Economy Improvement and Risk Shortening by Fuel Cell-UPFC Placement in a Wind-Combined System," Energies, MDPI, vol. 16(4), pages 1-30, February.
    3. Jayanta Bhusan Basu & Subhojit Dawn & Pradip Kumar Saha & Mitul Ranjan Chakraborty & Taha Selim Ustun, 2022. "Economic Enhancement of Wind–Thermal–Hydro System Considering Imbalance Cost in Deregulated Power Market," Sustainability, MDPI, vol. 14(23), pages 1-25, November.
    4. Lin, Zhiyi & Song, Chunyue & Zhao, Jun & Yin, Huan, 2022. "Improved approximate dynamic programming for real-time economic dispatch of integrated microgrids," Energy, Elsevier, vol. 255(C).
    5. Sheikh Safiullah & Asadur Rahman & Shameem Ahmad Lone & S. M. Suhail Hussain & Taha Selim Ustun, 2022. "Novel COVID-19 Based Optimization Algorithm (C-19BOA) for Performance Improvement of Power Systems," Sustainability, MDPI, vol. 14(21), pages 1-27, November.
    6. Zandrazavi, Seyed Farhad & Guzman, Cindy Paola & Pozos, Alejandra Tabares & Quiros-Tortos, Jairo & Franco, John Fredy, 2022. "Stochastic multi-objective optimal energy management of grid-connected unbalanced microgrids with renewable energy generation and plug-in electric vehicles," Energy, Elsevier, vol. 241(C).
    7. Qian Zhang & Lisheng Wei & Benben Yang, 2022. "Research on Improved BBO Algorithm and Its Application in Optimal Scheduling of Micro-Grid," Mathematics, MDPI, vol. 10(16), pages 1-18, August.
    8. Arias-Gaviria, Jessica & Arango-Aramburo, Santiago & Lamadrid L, Alberto J., 2022. "The effects of high penetrations of renewable energy sources in cycles for electricity markets: An experimental analysis," Energy Policy, Elsevier, vol. 166(C).
    9. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    10. Wiser, R. H., 2000. "The role of public policy in emerging green power markets: an analysis of marketer preferences," Renewable and Sustainable Energy Reviews, Elsevier, vol. 4(2), pages 177-212, June.
    11. Hossein Lotfi & Mohammad Hasan Nikkhah, 2024. "Multi-Objective Profit-Based Unit Commitment with Renewable Energy and Energy Storage Units Using a Modified Optimization Method," Sustainability, MDPI, vol. 16(4), pages 1-29, February.
    12. Virasjoki, Vilma & Siddiqui, Afzal S. & Oliveira, Fabricio & Salo, Ahti, 2020. "Utility-scale energy storage in an imperfectly competitive power sector," Energy Economics, Elsevier, vol. 88(C).
    13. Holmberg, Pär & Newbery, David & Ralph, Daniel, 2013. "Supply function equilibria: Step functions and continuous representations," Journal of Economic Theory, Elsevier, vol. 148(4), pages 1509-1551.
    14. Wilkinson, Sam & Maticka, Martin J. & Liu, Yue & John, Michele, 2021. "The duck curve in a drying pond: The impact of rooftop PV on the Western Australian electricity market transition," Utilities Policy, Elsevier, vol. 71(C).
    15. David P. Brown & Andrew Eckert & Douglas Silveira, 2023. "Strategic interaction between wholesale and ancillary service markets," Competition and Regulation in Network Industries, , vol. 24(4), pages 174-198, December.
    16. Xu, Ying & Ren, Li & Zhang, Zhongping & Tang, Yuejin & Shi, Jing & Xu, Chen & Li, Jingdong & Pu, Dongsheng & Wang, Zhuang & Liu, Huajun & Chen, Lei, 2018. "Analysis of the loss and thermal characteristics of a SMES (Superconducting Magnetic Energy Storage) magnet with three practical operating conditions," Energy, Elsevier, vol. 143(C), pages 372-384.
    17. Narendra Kumar Jena & Subhadra Sahoo & Binod Kumar Sahu & Amiya Kumar Naik & Mohit Bajaj & Stanislav Misak & Vojtech Blazek & Lukas Prokop, 2023. "Impact of a Redox Flow Battery on the Frequency Stability of a Five-Area System Integrated with Renewable Sources," Energies, MDPI, vol. 16(14), pages 1-29, July.
    18. Abolmassov Aleksandr & Kolodin Denis, 2003. "Structural changes in Russian electricity market," EERC Working Paper Series 01-016e, EERC Research Network, Russia and CIS.
    19. Karlson Hargroves & Benjamin James & Joshua Lane & Peter Newman, 2023. "The Role of Distributed Energy Resources and Associated Business Models in the Decentralised Energy Transition: A Review," Energies, MDPI, vol. 16(10), pages 1-15, May.
    20. Pär Holmberg, 2017. "Pro‐competitive Rationing in Multi‐unit Auctions," Economic Journal, Royal Economic Society, vol. 127(605), pages 372-395, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:24:p:9457-:d:1002528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.