Optimal Planning of Energy Storage for Wind Farm GENCO in Power Spot Market

When large-scale of wind generation participate in power spot market, it is facing financial risk and curtailment challenge due to its volatility. Energy storage system (ESS) is one of the key means to enhance the controllability of wind generation. Planning of reasonable scale of ESS is important for wind farm GENCO to ensure the overall economic benefits. In the paper, a process for optimal planning of ESS for a wind farm GENCO in a power spot market is proposed. Day-ahead and real-time market price of a power spot market is predicted based on a production cost simulation model. And day-ahead and real-time power output of wind generation are established based on a probabilistic model using historical data. The optimal capacity and energy of ESS is obtained by using an optimization model that maximizes the combined economic benefits of the wind farm and ESS by reducing wind generation curtailment and the economic loss due to the forecast error in the spot market. A case study is performed based on actual power system data to optimize the ESS scale for a wind farm.