Stochastic programming of energy system operations considering terminal energy storage levels

Teemu J. Ikonen*, Dongho Han, Jay H. Lee, Iiro Harjunkoski

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

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Abstract

Energy storage units offer vital balancing power for energy systems with an increasing amount of variable renewable energy (VRE) sources. The operation of such systems can be optimized by stochastic programming, which anticipates the uncertainty related to the variable renewable energy sources. However, these optimization problems can only be formulated for optimization horizons with a finite length, due to the rapidly increasing problem size and uncertainty in VRE production. Realistic valuation of the stored energy at the end of a horizon is important for long-term operation of the system. In this work, we investigate two different valuation methods, which are based on forecasted electricity prices, for storage-only and producer-oriented energy systems that participate in the day-ahead market. On a case study on the German day-ahead market, the methods yield competitive profits with reduced cycling of the energy storage unit and deviations with respect to the day-ahead trading.

Original languageEnglish
Article number108449
Number of pages17
JournalComputers and Chemical Engineering
Volume179
DOIs
Publication statusPublished - Nov 2023
MoE publication typeA1 Journal article-refereed

Keywords

  • Day-ahead market
  • Energy storage
  • Photovoltaic power
  • Renewable energy
  • Stochastic programming

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