Economic Enhancement of Wind–Thermal–Hydro System Considering Imbalance Cost in Deregulated Power Market

Jayanta Bhusan Basu, Subhojit Dawn (), Pradip Kumar Saha, Mitul Ranjan Chakraborty and Taha Selim Ustun ()
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Jayanta Bhusan Basu: Department of Electrical Engineering, Siliguri Institute of Technology, Darjeeling 734009, India
Subhojit Dawn: Department of Electrical & Electronics Engineering, Velagapudi Ramakrishna Siddhartha Engineering College, Vijayawada 520007, India
Pradip Kumar Saha: Department of Electrical Engineering, Jalpaiguri Government Engineering College, Jalpaiguri 735102, India
Mitul Ranjan Chakraborty: Department of Electrical Engineering, Siliguri Institute of Technology, Darjeeling 734009, India
Taha Selim Ustun: Fukushima Renewable Energy Institute, AIST (FREA), Koriyama 963-0298, Japan

Sustainability, 2022, vol. 14, issue 23, 1-25

Abstract: Studying the property of the combination of renewable energy sources in the existing power systems is of great importance, and especially in the case of deregulated systems. The uncertainty of renewable sources is the largest barrier to integrating renewable-energy-producing units into the existing electrical infrastructure. Due to its uncertainty, integrating wind power into an existing power system requires extra consideration. In this work, the impacts of wind farm (WF) integration and a pumped hydroelectric storage system (PHES) on the electric losses, voltage profiles, generation costs, and system economy in a deregulated power market were studied. A comparative study was performed to determine the impact of wind farm integration on regulated and deregulated environments. Four locations in India were chosen at random for this work, and we used the real-time statistics for the actual wind speeds (AWSs) and forecasted wind speeds (FWSs) for each chosen location. To determine the system economy, surplus charge rates and deficit charge rates were developed to evaluate the imbalance cost resulting from the mismatch between the predicted and actual wind speeds. Considering the effect of the imbalance cost, the system profit/day varies by an average of 1.6% for the locations studied. Because of the reorganization of the power system, consumers constantly look for reliable and affordable power that is also efficient. As a result, the system security limit may be breached, or the system may run in a dangerous state. Lastly, in this paper, an economic risk analysis is presented with the help of heuristic algorithms (i.e., artificial bee colony algorithm (ABC) and moth–flame optimization algorithm (MFO)), along with sequential quadratic programming (SQP), and the way in which the PHES is used to compensate for the deviation in the WF integration in the real-time electricity market is also presented. The value at risk (VaR) and conditional value at risk (CVaR) were used as the economic risk analysis tools. According to the work, with the increase in the wind generation, the system risk improves. The results show that, as the wind generation increases by three times, there is an improvement in the risk coefficient values by 1%. A modified IEEE 14-bus test system was used for the validation of the entire work.

Keywords: regulated system; deregulated system; wind energy; energy storage devices; modern power system; system profit; VaR; CVaR (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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