Locational Marginal Pricing and Daily Operation Scheduling of a Hydro-Thermal-Wind-Photovoltaic Power System Using BESS to Reduce Wind Power Curtailment

Abstract

The Daily Operation Scheduling (DOS) gets new challenges while a large-scale of renewable energy is inserted into the power system. In addition to the operation, the power variability of these sources also causes a problem in the hourly pricing, represented here by Locational Marginal Pricing (LMP). Therefore, new applications, such as energy shifting, offer greater efficiency to the system, minimizing the negative effects caused by wind power curtailment (WPC). This paper shows the LMP formation in the DOS of the hydro-thermal-wind-photovoltaic power system with a battery energy storage system and the reduction of WPC. Here, the wind and photovoltaic power plants are designed to be dispatched, not mandatory, to be able to cut the generation, and the insertion of Distributed Generation is considered. Moreover, to solve the DOS problem, the interior-point method is used. Additionally, the DC optimal power flow, used to represent the DOS in addition to the representation of the electric grid, is modeled with an iterative approach. The analysis is made in an IEEE 24-bus system with data from Brazil. Lastly, the results of simulations are presented and discussed, demonstrating the effectiveness of the optimization to reduce the WPC, the total operation cost, and to provide the LMP curve.