Optimal bidding and offering strategies of compressed air energy storage: A hybrid robust-stochastic approach

By W. Cai, Rasoul Mohammaditab, G. Fathi, Karzan Wakil, A. Ebadi, Noradin Ghadimi. 2019

320 citations recorded by the source corpus.

Abstract Market players face electricity market price uncertainty as a challenging issue in restructured electricity markets. To overcome this problem, taking optimal bidding and offering strategies is very important. This paper proposes a new mathematical model as a hybrid robust-stochastic method in order to maximize the expected profit of a compressed air energy system. Also, this study considers the uncertainty of market price with a set of scenarios via stochastic method while it models the uncertainty of maximum capacity of cavern via robust optimization approach. Furthermore, the proposed model formulates mixed-integer linear programming and obtains optimal offering and bidding curves of a compressed air energy system, which are robust against the uncertainty associated with market price and cavern uncertainty. Obtained results show that total profit, without considering cavern’s uncertainty, is equal to $9585 while this amount for the most robust case obtained as $8753. This means that being robust against the maximum capacity of caver’s uncertainty reduces total profit by about 8.68%.

Subfields: Electrical and Electronic Engineering, Mechanical Engineering

View Paper: https://www.semanticscholar.org/paper/387337683aa369da7eb353924737cdb498e00981