Wind Versus Storage Allocation for Price Management in Wholesale Electricity Markets
Amin Masoumzadeh, Ehsan Nekouei, Tansu Alpcan
IEEE Transactions on Sustainable Energy | Institute of Electrical and Electronics Engineers | Published : 2020
This paper investigates the impacts of installing regulated wind and electricity storage on average price and price volatility in electricity markets. A stochastic bi-level optimization model is developed, which computes the optimal allocation of new wind and battery capacities, by minimizing a weighted sum of the average market price and price volatility. A fixed budget is allocated on wind and battery capacities in the upper-level problem. The operation of strategic/regulated generation, storage, and transmission players is simulated in the lower-level problem using a stochastic (Bayesian) Cournot-based game model. Australia's national electricity market, which is experiencing occasional p..View full abstract
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Awarded by ARC Discovery Project
This work was supported by the ARC Discovery Project DP140100819. The work of E. Nekouei was supported in part by Knut and Alice Wallenberg Foundation, in part by the Swedish Foundation for Strategic Research, and in part by the Swedish Research Council. Paper no. TSTE-00729-2018.