Optimal storage sizing for profit maximization of a wind power producer in energy market environment

Abstract

This paper proposes an approach to optimally size storage system which will be used by a wind power producer who wants to bid in the Iberian day-ahead energy market. The proposed approach takes uncertainties of wind generation and market prices into consideration. The sizing problem will be treated as an optimization problem with an objective of maximizing the profit and it will be solved using Stochastic Linear programming. Market constraints were taken into account which will affect the decision of investment in Energy Storage System (ESS).