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

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 ener...

Full description

Saved in:
Bibliographic Details
Published in:Energy (Oxford) 2014-05, Vol.69, p.3-11
Main Authors: Sousa, Jorge A.M., Teixeira, Fábio, Faias, Sérgio
Format: Article
Language:English
Subjects:
Balancing
Demand
Electric power generation
Electricity markets
Electricity systems modeling
Mathematical models
Non-linear programming
Optimization
Price-maker
Pumped storage hydro scheduling
Stores
Wind energy
Wind power
Wind power integration
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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. •We model a pumped storage hydro (PSH) unit in a price-taker and price-maker context.•We simulate the pumped hydro unit scheduling for one week hourly period.•The price-maker standalone PSH integrates less wind power.•In a portfolio with a base load plant the PSH operational profile may completely change.
ISSN:0360-5442
DOI:10.1016/j.energy.2014.03.039