A two-stage distributed stochastic planning method for source-grid-load-storage flexibility resources considering flexible ramp capacity

Abstract

With rapidly increasing levels of renewable energy penetration, flexibility resources play an ever more critical role in the future power system. This paper describes a two-stage stochastic mixed integer second order cone (MISOC) method for flexibility resource planning (VFRP) considering source-grid-load-storage interactions. Considering renewable energy penetration levels and flexibility resource characteristics, this study quantifies the extent to which the share of renewable energy generation affects cost performance, and assesses the priority and potential of investing in flexibility resources. Moreover, the multi-type flexibility resource portfolio allocation method and energy storage only approach are compared in terms of socio-economic benefits. A multi-cut Benders-based approach is used for decomposing large-scale stochastic expansion planning problems to reduce the computational burden. Numerical simulation tests on the modified energy test systems I39G20 and F213G20 verified the correctness and effectiveness of the proposed flexible resource planning models and solution algorithms. The simulation results show that retrofit of coal-fired units for better flexibility has a higher investment return. Still, energy storage presents a tremendous investment prospect and potential. Finally, the multi-type flexibility resource portfolio allocation method is more cost-effective than an energy storage only approach.