Hybrid solar PV-wind-battery system bidding optimisation: A case study for the Iberian and Italian liberalised electricity markets

Abstract

The coupling of electrical batteries with variable renewable power generation can increase the production flexibility and revenue of power plant operators. This study focuses on developing an optimisation model to manage the operational revenue of a renewable power unit comprising a wind farm, solar photovoltaic (PV) power plant, and electrical battery. The power system integration was conducted by formulating a mixed-integer linear programme to schedule the day-ahead operation of the renewable power unit in two liberalised power markets: the Italian and Iberian day-ahead power markets. Several scenarios and case studies have been analysed to assess the value of storage for revenue maximisation. The proposed methodology results reveal that the average yearly net revenue of the hybrid PV-wind-storage power plant can increase by 4% compared to the standalone operation of the wind and solar PV power plants. Additionally, the results indicate that in the markets analysed the coupling of storage to wind power generates a higher revenue than coupling storage systems with solar power. The study demonstrated a correlation between the increase in revenue and the capacity installed in the battery and concluded that the use of hybrid VRE storage systems would be feasible in the Iberian Peninsula and Italy for battery installation costs ranging from €14,804/MW to €38,267/MW.