A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment

A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment

Blog Article

This paper presents a short-term decision-making model for an electricity retailer with battery energy storage system (BESS) and virtual bidding through a two-stage stochastic optimization framework.In the first stage, the retailer determines the amount of power to be purchased in the day-ahead wholesale market and the optimal Pick Set incremental and decremental virtual bidding strategies.In the second stage, the optimal energy storage decisions and the retailer’s involvement in the real-time market are determined.The proposed model minimizes the retailer’s expected procurement cost and generates the optimal power and virtual bidding curves in Course a pied - Femme - Vetements - Chandail - Zip the day-ahead market.Two types of Conditional Value at Risk (CVaR) are integrated in the proposed model to manage the retailer’s hourly and daily risks, respectively.

Case studies with real-world data are performed to verify the retailer’s cost reduction obtained with the integration of BESS and virtual bidding and to study how the hourly and daily risk-management strategies affect the retailer’s procurement cost distribution for different risk-aversion levels.