Coordinated generation expansion planning & energy storage planning model of the IPP's participation in the electricity markets

Abstract

Independent power producer (IPP) as a zero emitter resource can contribute to a carbon emission reduction of the power system. However, the disappearance of the power purchase agreements (PPAs) or their short-term extension jeopardizes the future operation of the IPPs. Therefore, this paper proposes an expansion planning model for an IPP in the absence of PPAs. To this end, this paper coordinates the IPP's generation expansion planning (GEP) with an expansion planning in energy storage units in a bilevel optimization framework for an IPP to assess its capacity expansion to obtain the maximum benefit. In the proposed bi-level model, the profit of an IPP (or aggregated IPPs) is maximized in the upper level to obtain the strategic investment decisions, while the electricity market clearing considering the upper-level solutions is executed at the lower-level. In order to gain the maximum profit, the energy storage either could execute energy arbitrage or store the energy from the corresponding IPP in the proposed expansion planning model. In order to overcome the complexity of the proposed model, the bi-level nonlinear problem is recast to a mixed-integer linear problem. Finally, the IEEE 24-bus RTS is utilized to evaluate the performance of the proposed model.