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Impact of a price-maker pumped storage hydro unit on the integration of wind energy in power systems

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  • Sousa, Jorge A.M.
  • Teixeira, Fábio
  • Faias, Sérgio

Abstract

The increasing integration of larger amounts of wind energy into power systems raises important operational issues, such as the balance between power generation and demand. The pumped storage hydro (PSH) units are one possible solution to mitigate this problem, once they can store the excess of energy in the periods of higher generation and lower demand. However, the behavior of a PSH unit may differ considerably from the expected in terms of wind power integration when it operates in a liberalized electricity market under a price-maker context. In this regard, this paper models and computes the optimal PSH weekly scheduling in a price-taker and price-maker scenarios, either when the PSH unit operates in standalone and integrated in a portfolio of other generation assets. Results show that the price-maker standalone PSH will integrate less wind power in comparison with the price-taker situation. Moreover, when the PSH unit is integrated in a portfolio with a base load power plant, the role of the price elasticity of demand may completely change the operational profile of the PSH unit.

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  • Sousa, Jorge A.M. & Teixeira, Fábio & Faias, Sérgio, 2014. "Impact of a price-maker pumped storage hydro unit on the integration of wind energy in power systems," Energy, Elsevier, vol. 69(C), pages 3-11.
    • Handle: RePEc:eee:energy:v:69:y:2014:i:c:p:3-11
    DOI: 10.1016/j.energy.2014.03.039
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    6. Tom Brijs & Frederik Geth & Sauleh Siddiqui & Benjamin F. Hobbs & Ronnie Belmans, 2016. "Price-Based Unit Commitment Electricity Storage Arbitrage with Piecewise Linear Price-Effects," Discussion Papers of DIW Berlin 1567, DIW Berlin, German Institute for Economic Research.
    7. Calvillo, C.F. & Sánchez-Miralles, A. & Villar, J. & Martín, F., 2016. "Optimal planning and operation of aggregated distributed energy resources with market participation," Applied Energy, Elsevier, vol. 182(C), pages 340-357.
    8. Bertsiou, M. & Feloni, E. & Karpouzos, D. & Baltas, E., 2018. "Water management and electricity output of a Hybrid Renewable Energy System (HRES) in Fournoi Island in Aegean Sea," Renewable Energy, Elsevier, vol. 118(C), pages 790-798.
    9. Hunt, Julian David & Freitas, Marcos Aurélio Vasconcelos & Pereira Junior, Amaro Olímipio, 2014. "Enhanced-Pumped-Storage: Combining pumped-storage in a yearly storage cycle with dams in cascade in Brazil," Energy, Elsevier, vol. 78(C), pages 513-523.
    10. Xiuyun Wang & Yibing Zhou & Junyu Tian & Jian Wang & Yang Cui, 2018. "Wind Power Consumption Research Based on Green Economic Indicators," Energies, MDPI, vol. 11(10), pages 1-24, October.
    11. Yanjuan Yu & Hongkun Chen & Lei Chen, 2018. "Comparative Study of Electric Energy Storages and Thermal Energy Auxiliaries for Improving Wind Power Integration in the Cogeneration System," Energies, MDPI, vol. 11(2), pages 1-16, January.
    12. Ak{i}n Tac{s}cikaraou{g}lu & Ozan Erdinc{c}, 2018. "A Profit Optimization Approach Based on the Use of Pumped-Hydro Energy Storage Unit and Dynamic Pricing," Papers 1806.05211, arXiv.org.
    13. Melikoglu, Mehmet, 2017. "Pumped hydroelectric energy storage: Analysing global development and assessing potential applications in Turkey based on Vision 2023 hydroelectricity wind and solar energy targets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 146-153.
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