Cross-market optimization for hybrid energy storage systems

A method is developed to generate optimal bid schedules for a hybrid energy storage system participating in both energy and regulation service markets. The hybrid energy storage system includes a fast-response component, such as a flywheel or battery, and a slow response component, such as a pumped-hydro or a conventional generator. This paper describes the objective function and constraints of the cross-market optimization problem. A genetic algorithm is used to solve the problem with a nonlinear penalty curve applied to the energy constraints. A single market optimization method based on priority search is used as a baseline. The results show that the cross-market optimization can improve revenue of the energy storage system by 6.9% over the baseline. Although the method was applied to a hybrid energy storage system, it can be generalized to any energy storage systems.

[1]  Anastasios G. Bakirtzis,et al.  A genetic algorithm solution to the unit commitment problem , 1996 .

[2]  Anastasios G. Bakirtzis,et al.  Genetic algorithm solution to the economic dispatch problem , 1994 .

[3]  A. Conejo,et al.  Optimal Response of a Power Generator to Energy, AGC, and Reserve Pool-Based Markets , 2002, IEEE Power Engineering Review.

[4]  Ning Lu,et al.  Pumped-storage hydro-turbine bidding strategies in a competitive electricity market , 2004, IEEE Transactions on Power Systems.

[5]  Rajat K. Deb.  Operating Hydroelectric Plants and Pumped Storage Units in a Competitive Environment , 2000 .

[6]  Yuri V. Makarov,et al.  Assessing the Value of Regulation Resources Based on Their Time Response Characteristics , 2008 .

[7]  M.L. Lazarewicz,et al.  Grid frequency regulation by recycling electrical energy in flywheels , 2004, IEEE Power Engineering Society General Meeting, 2004..

[8]  A. Conejo,et al.  Optimal response of a thermal unit to an electricity spot market , 2000 .

[9]  S.J. Kazempour,et al.  Self-scheduling of a joint hydro and pumped-storage plants in energy, spinning reserve and regulation markets , 2009, 2009 IEEE Power & Energy Society General Meeting.

[10]  Antonio J. Conejo,et al.  Self-Scheduling of a Hydro Producer in a Pool-Based Electricity Market , 2002, IEEE Power Engineering Review.

[11]  F. Nogales,et al.  Price-Taker Bidding Strategy under Price Uncertainty , 2002, IEEE Power Engineering Review.

[12]  Yuri V. Makarov,et al.  THE WIDE-AREA ENERGY STORAGE AND MANAGEMENT SYSTEM PHASE II Final Report - Flywheel Field Tests , 2010 .