Abstract
In this paper, the authors propose the mathematical model which derives the optimal operation strategies of an on-site power storage system through the use of stochastic dynamic programming technique. The model takes account of the variations and uncertainties of electricity market prices as well as the outage costs of power grid failures. The market price fluctuation is modeled with stochastic differential equation. The stochastic state transitions between normal and failed systems are modeled with exponential density functions. The derived optimal operation indicates that the economic value of the storage system may be increased substantially, if the avoided outage costs are explicitly taken into account. The results of the sensitivity analysis indicate that the most influential parameters are the magnitude of outage cost and the mean time to failure of power grid.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
