IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v360y2024ics0306261924001259.html
   My bibliography  Save this article

Renewable energy system sizing with power generation and storage functions accounting for its optimized activity on multiple electricity markets

Author

Listed:
  • Bechlenberg, Alva
  • Luning, Egbert A.
  • Saltık, M. Bahadır
  • Szirbik, Nick B.
  • Jayawardhana, Bayu
  • Vakis, Antonis I.

Abstract

With increasing deployment of offshore wind farms, energy storage systems (ESS) are necessary to balance the renewable energy’s intermittency. Instead of independently sizing ESS for an existing renewable energy system (RES), this research highlights the importance of simultaneously sizing all subsystems of an RES. With specific electricity markets in mind and the offshore transmission cable power capacity as a constraint, a model predictive control algorithm is used to maximize the revenue streams for the studied RES. Results demonstrate how the choice of financial metric plays a key role in the outcome: using the levelized cost of energy yields a differently sized RES compared to using the net present value (NPV). In terms of the latter, including a sized ESS in an existing RES increases the NPV significantly. Simultaneously sizing all subsystems of the RES, on the other hand, shows that a 50% increase in NPV can be achieved by deploying a smaller generation subsystem with a larger power capacity ESS, compared to the case in which only the ESS is sized. The introduced sizing approach can be utilized before deploying RES to take their context of operation into account, thereby avoiding the design of suboptimal solutions.

Suggested Citation

  • Bechlenberg, Alva & Luning, Egbert A. & Saltık, M. Bahadır & Szirbik, Nick B. & Jayawardhana, Bayu & Vakis, Antonis I., 2024. "Renewable energy system sizing with power generation and storage functions accounting for its optimized activity on multiple electricity markets," Applied Energy, Elsevier, vol. 360(C).
  • Handle: RePEc:eee:appene:v:360:y:2024:i:c:s0306261924001259
    DOI: 10.1016/j.apenergy.2024.122742
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261924001259
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2024.122742?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Vanegas-Cantarero, María M. & Pennock, Shona & Bloise-Thomaz, Tianna & Jeffrey, Henry & Dickson, Matthew J., 2022. "Beyond LCOE: A multi-criteria evaluation framework for offshore renewable energy projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    2. Bakker, Hannah & Dunke, Fabian & Nickel, Stefan, 2020. "A structuring review on multi-stage optimization under uncertainty: Aligning concepts from theory and practice," Omega, Elsevier, vol. 96(C).
    3. Yuqing Yang & Stephen Bremner & Chris Menictas & Merlinde Kay, 2019. "A Mixed Receding Horizon Control Strategy for Battery Energy Storage System Scheduling in a Hybrid PV and Wind Power Plant with Different Forecast Techniques," Energies, MDPI, vol. 12(12), pages 1-25, June.
    4. Lai, Chun Sing & Locatelli, Giorgio & Pimm, Andrew & Tao, Yingshan & Li, Xuecong & Lai, Loi Lei, 2019. "A financial model for lithium-ion storage in a photovoltaic and biogas energy system," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    5. Siddaiah, Rajanna & Saini, R.P., 2016. "A review on planning, configurations, modeling and optimization techniques of hybrid renewable energy systems for off grid applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 376-396.
    6. Anthony Roy & François Auger & Florian Dupriez-Robin & Salvy Bourguet & Quoc Tuan Tran, 2018. "Electrical Power Supply of Remote Maritime Areas: A Review of Hybrid Systems Based on Marine Renewable Energies," Energies, MDPI, vol. 11(7), pages 1-27, July.
    7. McDonagh, Shane & Ahmed, Shorif & Desmond, Cian & Murphy, Jerry D, 2020. "Hydrogen from offshore wind: Investor perspective on the profitability of a hybrid system including for curtailment," Applied Energy, Elsevier, vol. 265(C).
    8. Rubén López-Rodríguez & Adriana Aguilera-González & Ionel Vechiu & Seddik Bacha, 2021. "Day-Ahead MPC Energy Management System for an Island Wind/Storage Hybrid Power Plant," Energies, MDPI, vol. 14(4), pages 1-33, February.
    9. Jalving, Jordan & Ghouse, Jaffer & Cortes, Nicole & Gao, Xian & Knueven, Bernard & Agi, Damian & Martin, Shawn & Chen, Xinhe & Guittet, Darice & Tumbalam-Gooty, Radhakrishna & Bianchi, Ludovico & Beat, 2023. "Beyond price taker: Conceptual design and optimization of integrated energy systems using machine learning market surrogates," Applied Energy, Elsevier, vol. 351(C).
    10. Judge, Frances & McAuliffe, Fiona Devoy & Sperstad, Iver Bakken & Chester, Rachel & Flannery, Brian & Lynch, Katie & Murphy, Jimmy, 2019. "A lifecycle financial analysis model for offshore wind farms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 370-383.
    11. Yessica Arellano-Prieto & Elvia Chavez-Panduro & Pierluigi Salvo Rossi & Francesco Finotti, 2022. "Energy Storage Solutions for Offshore Applications," Energies, MDPI, vol. 15(17), pages 1-34, August.
    12. Soares-Ramos, Emanuel P.P. & de Oliveira-Assis, Lais & Sarrias-Mena, Raúl & Fernández-Ramírez, Luis M., 2020. "Current status and future trends of offshore wind power in Europe," Energy, Elsevier, vol. 202(C).
    13. Yang, Yuqing & Bremner, Stephen & Menictas, Chris & Kay, Merlinde, 2018. "Battery energy storage system size determination in renewable energy systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 109-125.
    14. Durakovic, Goran & del Granado, Pedro Crespo & Tomasgard, Asgeir, 2023. "Powering Europe with North Sea offshore wind: The impact of hydrogen investments on grid infrastructure and power prices," Energy, Elsevier, vol. 263(PA).
    15. Simpson, Juliet & Loth, Eric & Dykes, Katherine, 2020. "Cost of Valued Energy for design of renewable energy systems," Renewable Energy, Elsevier, vol. 153(C), pages 290-300.
    16. Maheshwari, Arpit & Paterakis, Nikolaos G. & Santarelli, Massimo & Gibescu, Madeleine, 2020. "Optimizing the operation of energy storage using a non-linear lithium-ion battery degradation model," Applied Energy, Elsevier, vol. 261(C).
    17. Julian David Hunt & Behnam Zakeri & Andreas Nascimento & Diego Augusto de Jesus Pacheco & Epari Ritesh Patro & Bojan Đurin & Márcio Giannini Pereira & Walter Leal Filho & Yoshihide Wada, 2023. "Isothermal Deep Ocean Compressed Air Energy Storage: An Affordable Solution for Seasonal Energy Storage," Energies, MDPI, vol. 16(7), pages 1-18, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bødal, Espen Flo & Holm, Sigmund Eggen & Subramanian, Avinash & Durakovic, Goran & Pinel, Dimitri & Hellemo, Lars & Ortiz, Miguel Muñoz & Knudsen, Brage Rugstad & Straus, Julian, 2024. "Hydrogen for harvesting the potential of offshore wind: A North Sea case study," Applied Energy, Elsevier, vol. 357(C).
    2. Yang, Yuqing & Bremner, Stephen & Menictas, Chris & Kay, Merlinde, 2022. "Modelling and optimal energy management for battery energy storage systems in renewable energy systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    3. Wiegner, J.F. & Andreasson, L.M. & Kusters, J.E.H. & Nienhuis, R.M., 2024. "Interdisciplinary perspectives on offshore energy system integration in the North Sea: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    4. Yang, Yuqing & Bremner, Stephen & Menictas, Chris & Kay, Merlinde, 2022. "Forecasting error processing techniques and frequency domain decomposition for forecasting error compensation and renewable energy firming in hybrid systems," Applied Energy, Elsevier, vol. 313(C).
    5. Mingyu Li & Dongxiao Niu & Zhengsen Ji & Xiwen Cui & Lijie Sun, 2021. "Forecast Research on Multidimensional Influencing Factors of Global Offshore Wind Power Investment Based on Random Forest and Elastic Net," Sustainability, MDPI, vol. 13(21), pages 1-19, November.
    6. Ghigo, Alberto & Faraggiana, Emilio & Giorgi, Giuseppe & Mattiazzo, Giuliana & Bracco, Giovanni, 2024. "Floating Vertical Axis Wind Turbines for offshore applications among potentialities and challenges: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 193(C).
    7. Xu, Jiuping & Liu, Tingting, 2020. "Technological paradigm-based approaches towards challenges and policy shifts for sustainable wind energy development," Energy Policy, Elsevier, vol. 142(C).
    8. Prasad, Abhnil Amtesh & Yang, Yuqing & Kay, Merlinde & Menictas, Chris & Bremner, Stephen, 2021. "Synergy of solar photovoltaics-wind-battery systems in Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    9. Wu, Yunna & Liu, Fangtong & Wu, Junhao & He, Jiaming & Xu, Minjia & Zhou, Jianli, 2022. "Barrier identification and analysis framework to the development of offshore wind-to-hydrogen projects," Energy, Elsevier, vol. 239(PB).
    10. Hou, Qingchun & Yu, Yanghao & Du, Ershun & He, Hongjie & Zhang, Ning & Kang, Chongqing & Liu, Guojing & Zhu, Huan, 2020. "Embedding scrapping criterion and degradation model in optimal operation of peak-shaving lithium-ion battery energy storage," Applied Energy, Elsevier, vol. 278(C).
    11. Nadège Bouchonneau & Arnaud Coutrey & Vivianne Marie Bruère & Moacyr Araújo & Alex Costa da Silva, 2023. "Finite Element Modeling and Simulation of a Submerged Wave Energy Converter System for Application to Oceanic Islands in Tropical Atlantic," Energies, MDPI, vol. 16(4), pages 1-17, February.
    12. Diego Bairrão & João Soares & José Almeida & John F. Franco & Zita Vale, 2023. "Green Hydrogen and Energy Transition: Current State and Prospects in Portugal," Energies, MDPI, vol. 16(1), pages 1-23, January.
    13. Michael O. Ukoba & Ogheneruona E. Diemuodeke & Mohammed Alghassab & Henry I. Njoku & Muhammad Imran & Zafar A. Khan, 2020. "Composite Multi-Criteria Decision Analysis for Optimization of Hybrid Renewable Energy Systems for Geopolitical Zones in Nigeria," Sustainability, MDPI, vol. 12(14), pages 1-27, July.
    14. Svetlana Drobyazko & Suparna Wijaya & Pavel Blecharz & Sergii Bogachov & Milyausha Pinskaya, 2021. "Modeling of Prospects for the Development of Regional Renewable Energy," Energies, MDPI, vol. 14(8), pages 1-17, April.
    15. Jiang, Sheng-Long & Wang, Meihong & Bogle, I. David L., 2023. "Plant-wide byproduct gas distribution under uncertainty in iron and steel industry via quantile forecasting and robust optimization," Applied Energy, Elsevier, vol. 350(C).
    16. Shih-Chieh Liao & Shih-Chieh Chang & Tsung-Chi Cheng, 2021. "Managing the Volatility Risk of Renewable Energy: Index Insurance for Offshore Wind Farms in Taiwan," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    17. Qolipour, Mojtaba & Mostafaeipour, Ali & Tousi, Omid Mohseni, 2017. "Techno-economic feasibility of a photovoltaic-wind power plant construction for electric and hydrogen production: A case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 113-123.
    18. Lai, Chun Sing & Locatelli, Giorgio, 2021. "Economic and financial appraisal of novel large-scale energy storage technologies," Energy, Elsevier, vol. 214(C).
    19. Khaki, Audil & Prasad, Mason & Al-Mohamad, Somar & Bakry, Walid & Vo, Xuan Vinh, 2023. "Re-evaluating portfolio diversification and design using cryptocurrencies: Are decentralized cryptocurrencies enough?," Research in International Business and Finance, Elsevier, vol. 64(C).
    20. Tarroja, Brian & Hittinger, Eric, 2021. "The value of consumer acceptance of controlled electric vehicle charging in a decarbonizing grid: The case of California," Energy, Elsevier, vol. 229(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:360:y:2024:i:c:s0306261924001259. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.