The microgrids' participation problem in the wholesale markets considering different viewpoints about the ownership and the management of the battery energy storages

Abstract

The battery energy storages (BESs) are the main technologies in facilitating the integration of the renewable energy sources (RESs) into the power systems through the microgrid (MG) platform. The MG operators (MGOs) can supply their own demand and they can also trade energy with the markets through optimal charging/discharging of the BESs. Moreover, the BESs give the ability to the MGOs to earn more profit from participating in the wholesale ancillary service markets. Although the BESs are considered in the MGO's participation problem in the markets in most of the previous studies, they are not modeled regarding ownership and management. Since in the real applications, the BESs are presented in the MG with different ownership and management, the importance and the necessity of considering these two factors are highlighted. To address this, three frameworks are proposed and formulated to consider different aspects of modeling the ownership and the management of the BESs in the MGOs decision-making problem in the markets. The numerical results showed that increasing 50 % of the operation cost of the BESs, reduces the MGO's revenue for only 4.3 % in case A where the MGO is the owner of the BESs. This is while, in case B, where the BESs have private owners, increasing 50 % of the BESs owner's bids decreases 17 % of the MGO's revenue. This declares that the MGO faces lower risk in Case A compared with Case B.