Optimal Participation of Co-Located Wind–Battery Plants in Sequential Electricity Markets

Abstract

Since hybrid power plants (HPPs) play an intensive role in the energy supply balance of future energy systems, there is today increased attention on co-located wind–battery HPPs both in industry and academia. This paper proposes an energy management system (EMS) methodology for wind–battery plants participating in two sequential electricity markets, namely in the spot market (SM) and the balancing market (BM). The proposed and implemented EMS consists of day-ahead (DA) spot market optimization, hour-ahead (HA) balancing market optimization, and intra-hour re-dispatch optimization to allow HPPs to achieve energy arbitrage, to offer regulation power at the HA stage, and to reduce real-time imbalances. The optimization models used in the EMS incorporate an accurate battery degradation model and grid connection constraints. This paper presents a detailed case analysis of the profitability of HPPs in markets towards 2030 based on the proposed EMS. Furthermore, the value of intra-hour re-dispatch optimization in improving the feasibility of generation plans, as well as the impacts of overplanting on wind energy curtailment and battery degradation, is also investigated based on the proposed EMS.