PNNL

Abstract

This paper presents a method to generate optimal bid schedules for energy storage systems participating in both energy market and regulation service market. Hybrid energy storage is introduced and used as the study system, which consists of a fast energy storage unit, such as a flywheel or battery, and a slow unit, such as a pumped hydro or conventional generator. The operation of energy storage is different from conventional generation because of the energy constraint and switching between two operating modes. This paper describes the objective function and constraints of the cross-market optimization problem. Genetic algorithm is used to solve the problem with non-linear penalty curve applied to energy constraints. A single market optimization method based on priority search is used as a baseline. The results show the cross-market optimization can improve revenue of the energy storage by 6.9% over the baseline. The simulation was conducted on the hybrid energy storage but can be generalized to any energy storage systems.