Optimal offering and operating strategies for wind-storage systems with linear decision rules

Research output: Contribution to journalJournal article – Annual report year: 2016Researchpeer-review

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The participation of wind farm-energy storage systems (WF-ESS) in electricity markets calls for an integrated view of day-ahead offering strategies and real-time operation policies. Such an integrated strategy is proposed here by co-optimizing offering at the day-ahead stage and operation policy to be used at the balancing stage. Linear decision rules are seen as a natural approach to model and optimize the real-time operation policy. These allow enhancing profits from balancing markets based on updated information on prices and wind power generation. Our integrated strategies for WF-ESS in electricity markets are optimized under uncertainty in both wind power and price predictions. The resulting stochastic optimization problem readily yields optimal offers and linear decision rules. By adding a risk-aversion term in form of conditional value at risk into the objective function, the optimization model additionally provides flexibility in finding a trade-off between profit maximization and risk management. Uncertainty in wind power generation, as well as day-ahead and balancing prices, takes the form of scenario sets, permitting to reformulate the optimization problem as a linear program. Case studies validate the effectiveness of the strategy proposed by highlighting and quantifying benefits w.r.t. other existing strategies.
Original languageEnglish
JournalIEEE Transactions on Power Systems
Issue number6
Pages (from-to)4755-64
Publication statusPublished - 2016

Bibliographical note

(c) 2016 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works

CitationsWeb of Science® Times Cited: No match on DOI

    Research areas

  • Bidding strategy, Electricity markets, Energy storage system, Linear decision rules, Real-time operation, Wind farm
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