Multistage Operation for Distributed Solar and Energy Storage System

Abstract

The aggregated system of the distributed solar and energy storage system can provide multi-service in the electric power market, benefiting from both energy arbitrage and frequency regulation. This paper focuses on the bidding strategy in day-ahead markets and the real-time operation plan of the aggregated system. The nature of the problem includes the coupling of multiple markets and the interconnection of different timescales, which could also be the breakthrough points of it. We propose a multi-stage stochastic optimization model to exploit the market potential of optimizing the regulation behavior while taking into account the energy arbitrage income. We divide the original problem into three stages, simplifying the problem and maintaining the relationships among stages at the same time. The multi-stage model is solved by stochastic dual dynamic programming algorithm and the validity of the approach is proved by the case study.