Natural gas unavailability, price uncertainty, and emission reduction policy in stochastic programming‐based optimal bidding of compressed air energy storage and wind units

Abstract

Abstract Today, with growing expansion of renewable energy resources, electricity production is accompanied by uncertainties. The usage and optimal management of energy storage is one of the effective ways to compensate for these uncertainties. Compressed air energy storage (CAES) is one of the two bulk electricity storage methods for power systems, burning natural gas (NG) to extract the stored energy. Therefore, the NG price uncertainty and gas availability along with carbon emission resulting from burning NG can affect optimal bidding result of this unit. Hence, this study addresses the optimal bidding problem of CAES and wind units, considering the aforementioned issues, while taking into account uncertainties of day‐ahead (DA) and balancing market prices, wind speeds, and NG prices and availability. Furthermore, the dynamics of natural gas flow in the pipeline is modelled. The stochastic programming (SP) method is proposed for solving this problem while taking risk into consideration. The scheduling has been presented for participation of generating company in DA and carbon emission markets. Simulation results indicate the capability of the proposed method in optimal bidding of CAES units while taking gas‐burning related constraints into consideration.

Keywords

• Flames, combustion, and explosions
• Fossil fuels
• Wind energy
• Storage in mechanical energy
• Atmosphere (environmental science)
• Pollution detection and control