Multi Objective Scheduling of Utility-scale Energy Storages and Demand Response Programs Portfolio for Grid Integration of Wind Power

Increasing the penetration of variable wind generation in power systems has created some new challenges in the power system operation. In such a situation, the inclusion of flexible resources which have the potential of facilitating wind power integration is necessary. Demand response (DR) programs and emerging utility-scale energy storages (ESs) are known as two powerful flexible tools that can improve large-scale integration of intermittent wind power from technical and economic aspects. Under this perspective, this paper proposes a multi objective stochastic framework that schedules conventional generation units, bulk ESs, and DR resources simultaneously with the application to wind integration. The proposed formulation is a sophisticated problem which coordinates supply-side and demand-side resources in energy and up/down spinning reserve markets so that the cost, emission, and multi objective functions are minimized separately. In order to determine the most efficient DR program which can potentially coordinate with bulk ESs in the system with a significant amount of wind power, a comprehensive DR programs portfolio including timeand incentive-based programs is designed. Afterwards, strategy success index (SSI) is employed to prioritize DR programs from independent system operator (ISO) perspective. The IEEE-RTS is used to reveal the effectiveness of the proposed method. Keyword: Bulk energy storages, Demand response programs, Electricity market, Wind power generation. NOMENCLATURE Indices , b b  Index of system buses i Index of generating unit j Index of bulk energy storage units l Index of transmission line m Segment index for linearized fuel cost Tpeak Index of peak hours s Index of scenarios , t t  Index of hours NM Number of segments for the piecewise linearized emission and fuel cost curves of units NS Number of wind generation scenarios NG Number of generation units NES Number of bulk energy storage units NT Number of studied hours NB Number of network buses Parameters 0 t d Initial electricity demand at hour t (MW) b LD Demand contribution of bus b (MW) e itm C Slope of segment m in linearized fuel cost curve of unit i at hour t ($/MWh) 2 / x SO NO itm EC Slope of segment m in linearized emission emission curve of unit i at hour t (lbs/MWh) i MPC Minimum production cost of unit i ($) 2 / x SO NO i MPE Minimum produced emission of unit i (lbs/h) 0 t  Initial electricity price at hour t ($/MWh) s  Probability of scenario s UC it C Offered capacity cost of up-spinning reserve provision of unit i at hour t ($/MW) DC it C Offered capacity cost of down-spinning reserve provision of unit i at hour t ($/MW) NSR it C Offered capacity cost of non-spinning reserve provision of unit i at hour t ($/MW) UE it C Offered energy cost of up-spinning reserve provision of unit i at hour t ($/MWh) DE it C Offered energy cost of down-spinning reserve provision of unit i at hour t ($/MWh) Received: 29 Aug. 2015 Revised: 21 Dec. 2015 and 5 Apr. 2016 Accepted: 01 May 2016 Corresponding author: E-mail: h.aalami41@eyc.ac.ir (H. A. Aalami)  2016 University of Mohaghegh Ardabili. All rights reserved. E. Heydarian-Forushani, H. A. Aalami: Multi Objective Scheduling of Utility-scale Energy Storages and Demand... 105 , ES Energy jt C Offered energy cost of bulk energy storage j at hour t ($/MWh) , ES U jt C Offered capacity cost of up-spinning reserve provision of bulk ES j at hour t ($/MW) , ES D jt C Offered capacity cost of down-spinning reserve provision of bulk ES j at hour t ($/MW) , ES NSR jt C Offered capacity cost of non-spinning reserve provision of bulk ES j at hour t ($/MW) UE jt C Offered energy cost of up-spinning reserve provision of bulk ES j at hour t ($/MWh) DE jt C Offered energy cost of down-spinning reserve provision of bulk ES j at hour t ($/MWh) spillage C Cost of wind power curtailment ($/MWh) bt VOLL Value of lost load in bus b at hour t ($/MWh) t INC Incentive payment at hour t ($/MWh) t IC Initial contract level of customers at hour t (MWh) t PEN Penalty payment at hour t ($/MWh) * bt W Forecasted value of wind generation in bus b at hour t ($/MWh) / Ch DeCh   Charge/discharge efficiency of bulk ES tt E  Price elasticity of demand min max i i P P Minimum/ maximum output limit of generation unit i (MW) i i RU RD Ramp up/down of generation unit i (MW/h) i SC Start-up cost of generation unit i ($) MUT MDT i i Minimum up/down time of generation unit i (h) ,max ,max / ChES DeES j j P P Maximum charging/discharging power of bulk ES j (MW) ,min ,max / ES ES j j SOE SOE Minimum/Maximum energy limit of bulk ES j (MWh) j  Percent of initial energy level of bulk ES j , ES j initial SOE Initial state of the charge of bulk ES j at the beginning of scheduling horizon l X Reactance of line l max l F Maximum capacity of transmission line l (MW)  Spinning reserve market lead time (h) Variables 0 / bt bt   Voltage angle in bus b at hour t (rad) 0 / lt lt F F  Power flow through line l at hour t (MW) it U Binary status indicator of generation unit i at hour t / DeBatt ChBatt jt jt I I Binary indicator of net discharge/charge status of bulk BES j bts LS Involuntary load shedding in bus b at hour t of scenario s (MWh) bts WS Wind power spillage in bus b at hour t of scenario s (MWh) e itm P Generation of segment m in linearized fuel cost curve (MW) t d Modified demand of hour t after simultaneous IBDR and TBRDR programs (MW) t  Optimal DR tariffs at hour t in TBRDRPs ($/MWh) / Incentive Penalty t C Incentive or penalty payments as a result of IBDRPs ($) it P Total scheduled power of unit i at hour t (MW) it SUC Start-up cost of generation unit i at hour t ($) / usr dsr it it P P Scheduled upand down-spinning reserve capacity of unit i at hour t (MW) nsr it P Scheduled non-spinning reserve capacity of unit i at hour t (MW) / ChES DeES jt jt P P Scheduled charge/discharge power of bulk ES j at hour t (MW) / usr dsr jt jt P P Scheduled upand down-spinning reserve capacity of bulk ES j at hour t (MW) nsr jt P Scheduled non-spinning reserve capacity of bulk ES j at hour t (MW) / U D its its sr sr Deployed upand down spinning reserve of unit i at hour t of scenario s (MWh) , , / ES U ES D jts jts sr sr Deployed upand down spinning reserve of bulk ES j at hour t of scenario s (MWh) ES jt SOE Energy stored in bulk ES j at hour t (MWh)

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