Journal article

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

Abstract

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