Benefits of Strategically Sizing Wind-Integrated Energy Storage and Transmission
Shubhrajit Bhattacharjee, Ramteen Sioshansi, Hamidreza Zareipour
Abstract
We examine the behavior of a strategic firm that invests-in and operates wind, energy storage, and transmission. The capacity of the energy storage and transmission are co-optimized with the firm's wind-supply and energy-storage offers into a centrally dispatched electricity market. We employ a bi-level stochastic optimization model. The upper level determines the capacities and offering strategies to maximize the firm's expected profits. Multiple lower-level problems represent market clearing under different operating conditions, which capture uncertainties. The resulting large-scale optimization model is solved using multi-cut Benders's decomposition. The model is applied to a case study that is based on Alberta's electricity market.