Abstract
In this paper, we introduce a linear programming model to find optimal capacity for distributed power generating units and energy storage systems (ESSs) directly connected to solar photovoltaic systems or wind turbine generators. The ESSs are used to relieve the variability of renewable generators and provide operating reserves. The proposed optimization model minimizes the total annualized cost including construction and operation costs for generators and ESSs. A renewable portfolio standard and carbon dioxide emissions reduction target are applied to the optimization model as environmental policies. To examine the impacts of implementing the environmental policies and providing operating reserves by the ESSs, case studies are conducted, and results are compared. The optimal results obtained from the proposed model show that the total cost is reduced, and installed capacity of fossil-fired generators is smaller compared to when ESSs do not provide operating reserves.
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