A stochastic analysis of the energy and reserve operation for battery storage-assisted prosumer aggregator in the Southwest Power Pool Market

To facilitate the integration of renewable energy in electric power systems, the installed capacity of distributed renewable energy sources has been increased rapidly worldwide in recent years, and the prosumers and prosumer aggregators have become important players in smart grid. To maximize the economic benefits of a prosumer aggregator in power markets, a stochastic model used for generating the day-ahead (DA) energy and operating reserve scheduling strategies is proposed. The uncertainties associated with solar power productions, demands and prices in energy and operating reserve markets are handled via stochastic optimization technique. To manage the potential risks faced by the prosumer aggregator, the conditional value at risk is adopted to measure and manage its potential low profits or losses. Finally, case studies are performed by using the data in the energy and operating reserve markets operated by the Southwest Power Pool (SPP), and the optimal energy and operating reserve bids are generated effectively by solving the proposed model. The values of the operating reserve markets and battery storages are analyzed in detail via simulation, and it shows that higher reserve prices and larger battery storage capacity would lead to higher expected profit and lower risks for the prosumer aggregator. & COPY; 2023 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Automated summary

To promote the integration of renewable energy, distributed renewable energy sources have been rapidly installed worldwide. Prosumers and prosumer aggregators play important roles in smart grids. To optimize the economic benefits of prosumer aggregators, a stochastic model is proposed for generating day-ahead energy and operating reserve scheduling strategies. Potential risks faced by the prosumer aggregator are managed using conditional value at risk. Case studies using data from the Southwest Power Pool demonstrate the effectiveness of the proposed model in generating optimal energy and operating reserve bids. Analysis shows that higher reserve prices and larger battery storage capacity lead to higher expected profit and lower risks for the prosumer aggregator.