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Truncated Strategy Based Dynamic Network Pricing for Energy Storage
Xiaohe Yan1; Hongcai Zhang2; Chenghong Gu3; Nian Liu1; Furong Li3; Yonghua Song2
2022-03
Source PublicationJournal of Modern Power Systems and Clean Energy
ISSN2196-5625
Volume11Issue:2Pages:544 - 552
Abstract

With the increasing penetration of local renewable energy and flexible demand, the system demand is more unpredictable and causes network overloading, resulting in costly system investment. Although the energy storage (ES) helps reduce the system peak power flow, the incentive for ES operation is not sufficient to reflect its value on the system investment deferral resulting from its operation. This paper designs a dynamic pricing signal for ES based on the truncated strategy under robust operation corresponding to the network charge reduction. Firstly, the operation strategy is designed for ES to reduce the total network investment cost considering the uncertainties of flexible load and renewable energy. These nodal uncertainties are converted into branch power flow uncertainties by the cumulant and Gram-Charlier expansion strategy. Then, a time of use (ToU) pricing scheme is designed to guide the ES operation reflecting its impact on network investment based on the long-run investment cost (LRIC) pricing scheme. The proposed ToU LRIC method allocates the investment costs averagely to network users over the potential curtailment periods, which connects the ES operation with network investment. The curtailment amount and the distribution of power flow are assessed by the truncated strategy considering the impact of uncertainties. As demonstrated in a Grid Supply Point (GSP) distribution network in the UK, the network charges at the peak time reduce more than 20% with ES operation. The proposed method is cost-reflective and ensures the fairness and efficiency of the pricing signal for ES.

KeywordUncertainty Investment Costs Pricing Load Flow Renewable Energy Sources Optimization Energy Storage Network Investment Renewable Energy Robust Optimization
DOI10.35833/MPCE.2021.000631
URLView the original
Indexed BySCIE
Language英語English
WOS Research AreaEngineering
WOS SubjectEngineering, Electrical & Electronic
WOS IDWOS:000960894000015
Scopus ID2-s2.0-85151777631
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Citation statistics
Document TypeJournal article
CollectionTHE STATE KEY LABORATORY OF INTERNET OF THINGS FOR SMART CITY (UNIVERSITY OF MACAU)
Corresponding AuthorNian Liu
Affiliation1.State Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, North China Electric Power University, Beijing, China
2.State Key lab of Internet of Things for Smart City, University of Macau, Macau, China
3.Department of Electronic and Electrical Engineering, University of Bath, Bath, U.K.
Recommended Citation
GB/T 7714
Xiaohe Yan,Hongcai Zhang,Chenghong Gu,et al. Truncated Strategy Based Dynamic Network Pricing for Energy Storage[J]. Journal of Modern Power Systems and Clean Energy, 2022, 11(2), 544 - 552.
APA Xiaohe Yan., Hongcai Zhang., Chenghong Gu., Nian Liu., Furong Li., & Yonghua Song (2022). Truncated Strategy Based Dynamic Network Pricing for Energy Storage. Journal of Modern Power Systems and Clean Energy, 11(2), 544 - 552.
MLA Xiaohe Yan,et al."Truncated Strategy Based Dynamic Network Pricing for Energy Storage".Journal of Modern Power Systems and Clean Energy 11.2(2022):544 - 552.
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