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Optimal bidding and offering strategies of compressed air energy storage: A hybrid robust-stochastic approach

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  • Cai, Wei
  • Mohammaditab, Rasoul
  • Fathi, Gholamreza
  • Wakil, Karzan
  • Ebadi, Abdol Ghaffar
  • Ghadimi, Noradin

Abstract

Market players face electricity market price uncertainty as a challenging issue in restructured electricity markets. To overcome this problem, taking optimal bidding and offering strategies is very important. This paper proposes a new mathematical model as a hybrid robust-stochastic method in order to maximize the expected profit of a compressed air energy system. Also, this study considers the uncertainty of market price with a set of scenarios via stochastic method while it models the uncertainty of maximum capacity of cavern via robust optimization approach. Furthermore, the proposed model formulates mixed-integer linear programming and obtains optimal offering and bidding curves of a compressed air energy system, which are robust against the uncertainty associated with market price and cavern uncertainty. Obtained results show that total profit, without considering cavern’s uncertainty, is equal to $9585 while this amount for the most robust case obtained as $8753. This means that being robust against the maximum capacity of caver’s uncertainty reduces total profit by about 8.68%.

Suggested Citation

  • Cai, Wei & Mohammaditab, Rasoul & Fathi, Gholamreza & Wakil, Karzan & Ebadi, Abdol Ghaffar & Ghadimi, Noradin, 2019. "Optimal bidding and offering strategies of compressed air energy storage: A hybrid robust-stochastic approach," Renewable Energy, Elsevier, vol. 143(C), pages 1-8.
    • Handle: RePEc:eee:renene:v:143:y:2019:i:c:p:1-8
    DOI: 10.1016/j.renene.2019.05.008
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    References listed on IDEAS

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