Profit enhancement and grid frequency control by energy level scheduling of CAES system in wind-connected electrical system

The maintenance of power balance poses significant challenges in renewable combined deregulated power systems due to the unpredictable nature of renewable energy sources. This situation leads to economic instability within the system. However, an energy storage system can help maintain energy supply and control system stability for renewable incorporated thermal power plants. Unlike in regulated markets, energy prices in deregulated markets are not fixed by any government body or particular company. Instead, the Independent System Operator (ISO) serves as the main entity in the electrical market, gathering tenders from Generation Companies (GENCOs), Distribution Companies (DISCOs), and Transmission Companies (TRANSCOs). The market controller regulates energy prices using Nodal Pricing (NP), which provides economic benefits to both GENCOs and DISCOs. However, the unpredictability of renewable sources often results in a decline in system profit due to the production of an imbalance price (CostIMC) caused by a mismatch in contracted power generation from the renewable power plant. To address these issues, this study proposes a novel combined system that utilizes a suitable scheduling technique for the optimum operation of a wind farm-compressed air energy storage (CAES) system to maximize profit and revenue while maintaining grid frequency. The CAES system’s energy level is divided into four different levels, and an optimal strategy has been developed to efficiently utilize the CAES system to maintain grid frequency. This work has been conducted in both regulated and deregulated environments using a modified IEEE 30-bus system. The proposed method has been compared with an existing approach and has yielded better results in all aspects.