Naslov
Virtual Storage Plant Offering Strategy in Day-Ahead Electricity Market

Autori
Pandžić, Kristina ; Pandžić, Hrvoje ; Kuzle, Igor

Izvornik
International journal of electrical power & energy systems (0142-0615) 104 (2019), January; 401-413

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
Virtual storage plant, Energy storage, Bilevel programming, Mathematical problem with equilibrium constraints

Sažetak
Energy storage is gaining an important role in modern power systems with high share of renewable energy sources. Specifically, large-scale battery storage units (BSUs) are an attractive solution due to their modularity, fast response and ongoing cost reduction. This paper aims to formulate, analyze and clarify the role of merchant-owned BSUs in the day-ahead electricity market. It defines virtual storage plant (VSP) as a set of BSUs distributed across the network. A VSP offering model is formulated as a bilevel program in which the upper-level problem represents the VSP profit maximization and operation, while the lower-level problem simulates market clearing and price formation. This mathematical problem with equilibrium constraints (MPEC) is converted into a mixed-integer linear program (MILP). This is afterwards expanded to a game of multiple VSPs formulating an equilibrium problem with equilibrium constraints (EPEC), which is solved using the diagonalization procedure. The proposed model is applied to an updated IEEE RTS-96 system. We evaluate the impact VSPs have on the locational marginal prices and compare the coordinated approach (all BSUs operated under a single VSP), i.e. the MPEC formulation, to the competitive approach (multiple VSPs competing for profit), i.e. the EPEC formulation.

Izvorni jezik
Engleski

Znanstvena područja
Elektrotehnika

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