Abstract
As a major option for reducing greenhouse gas emission and sustainable development, renewable generation is rapidly expanding in the power sector. However, the variability and uncertainty of renewable generation undermine the reliability of the power system, requiring additional reserve capacities. This study estimates the costs induced by additional reserve capacities to reduce the uncertainty of solar generation in the Korean power system and analyzes the effectiveness of the Energy Storage System (ESS) in reducing these costs, using the stochastic form of multi-period security-constraint optimal power flow. To determine the input of stochastic solar generation, an ARMAX model and Monte Carlo method are applied for representative solar farms. The results indicate solar power generation by 2029 would increase the required reserve by 56.2% over the current level but coupling a 10 GWh of lithium-ion ESS would reduce it by 61.1% compared to increased reserve level for 2029. The operating cost reduction (benefit) by ESS would be 80.8% higher in 2029 compared to the current level and cover 89.9% of its installation cost. The benefit of ESS will be improved when (1) offer prices of reserves correctly reflect the true opportunity cost of providing reserve services and (2) more variable renewable energies are deployed.
Highlights
The ratification of the Paris Agreement in 2015 led to the strengthening of global efforts to reduce greenhouse gases
This study examines the impact of collocated lithium-ion battery (LIB) Energy Storage System (ESS) at solar farms on reducing the variability of solar generation and compares the operating cost savings achieved by ESS with its capital cost
To achieve the agreed levels of 37% reduction in greenhouse gases compared to business as usual (BAU) by 2030 under the Paris Agreement, Korea must embark on major changes to its generation mix
Summary
The ratification of the Paris Agreement in 2015 led to the strengthening of global efforts to reduce greenhouse gases. We analyze the economic feasibility of addressing the variability of solar PVs using ESS Existing models, such as the Wien Automatic System Planning Package, have focused on the analysis of power systems by processing renewable generation as deterministic information from the perspective of long-term capacity planning. This study examines the impact of collocated lithium-ion battery (LIB) ESS at solar farms on reducing the variability of solar generation and compares the operating cost savings achieved by ESS with its capital cost. These topics can be generalized to other countries.
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