Optimal Sizing and Operation of Battery Energy Storage Systems Connected to Wind Farms Participating in Electricity Markets

A Battery Energy Storage System (BESS) is a reliable resource to provide energy for various power system applications. The BESS can increase the flexibility and reliability of the renewable energy dispatch. Wind energy has the largest contribution among renewable energy resources and its control has become a research focus in power systems area. This paper introduces a novel BESS control to manage the net energy exchange between a wind farm and the grid in an electricity market. A Receding Horizon Control (RHC) scheme is proposed for optimal operation of the BESS in the presence of operational constraints. The proposed method seeks a decision policy to manage operation of the BESS to increase daily profits. Utilizing short-term wind and price forecasts provide valuable information for the BESS controller to obtain the best times to charge batteries, discharge the stored energy, or purchase energy from the DA market. An optimization problem is formulated considering BESS costs and operational constraints. This optimization problem, at each time step, is solved using the RHC scheme. All wind and electricity price data and case studies in this paper are based on MISO energy market data.