Optimal Operation Planning of Compressed Air Energy Storage Plants in Competitive Electricity Markets

Date
2017
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Volume Title
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Abstract
This thesis focuses on the operation of a compressed air energy storage (CAES) facility in an electricity market. CAES, a bulk energy storage technology, can provide time shifting due to its capability of storing large amount of energy, as well as ancillary services including spinning and non-spinning reserves due to its fast response. In order to participate effectively in electricity markets and consequently quantify the economics of CAES technology, scheduling of the CAES facility needs to be optimized considering market forecasts as well as efficiency of the components and operational characteristics. Moreover, Due to inevitable price forecasting error, effective bidding and offering strategy to purchase and sell electricity in the market is necessary to manage the risk of forecasting error. In this study, at first, a risk-constrained bidding/offering strategy for a merchant price-taker CAES providing time shifting is proposed to manage the risk of price forecasting errors. Pricetaker utility refers to a utility, which is small enough compared to the market size that its operation does not affect market price. Thereafter, since the operation of a large-scale facility in an electricity market could impact the prices, the scheduling of a merchant price-maker energy storage facility, doing energy arbitrage is proposed. In this model, the impact of storage operation on market clearing price are incorporated. As a continuation, this study proposes a bidding and offering strategy for a price-maker ES facility taking the forecasting errors into account based on the robust optimization to manage the associated risk when providing energy arbitrage. In order to maximize revenue, the potential gain from providing ancillary services (including spinning and non-spinning reserves) in addition to the energy arbitrage must be considered. In this regard, a scheduling model of a merchant CAES facility participating in day-ahead energy and reserve markets is developed. Meanwhile, the efficiency of a CAES facility deviates significantly from its nominal value depending on its thermodynamics and operational conditions. Thus, in this study, these limitations imposed on the facility are modelled as well when devising operations schedules.
Description
Keywords
Engineering--Electronics and Electrical
Citation
Soroush, S. (2017). Optimal Operation Planning of Compressed Air Energy Storage Plants in Competitive Electricity Markets (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca. doi:10.11575/PRISM/27208