Impact of market-driven energy storage system operation on the operational adequacy of wind integrated power systems

Abstract Energy storage systems (ESS) are being established as an important component of modern power systems along with renewable energy sources. These new resources are contributing to clean energy generation by offsetting the conventional fossil fuel-based generators. However, maintaining a balance between the sustainability of these new resources and providing acceptable system reliability is extremely challenging. These resources adapt their operating strategies with different objectives based on ownership, regulatory requirements, and revenue opportunities. The benefits from an ESS to the owner and the system ultimately depend on its operating strategy. Non-utility owned resources operate to maximize their profits from the electricity market. The impact of such a market-oriented operation of ESS on the reliability needs to be monitored. This paper in that regard considers market-driven ESS operation for operational adequacy planning. An analytical operational adequacy evaluation framework that incorporates the concepts of state enumeration, time series model of wind, and energy storage systems in conjunction with the dynamic system probability estimation approach has been used for that purpose. Furthermore, these scenarios are analyzed in terms of their environmental and economic performance.