Enhancing system profitability in a wind-associated system by incorporation of PHS and fuel cell in the power market

Abstract

The addition of renewable sources into existing power systems is an essential area of research due to the inherent uncertainty associated with renewable generation. Such uncertainty poses significant challenges in seamlessly assimilating wind energy into the existing electrical infrastructure. The main focus of this study is to look at the influence of the integration of wind farms (WFs) and pumped hydro storage (PHE) on power production costs and the power producer’s profitability. Four different sites in India were selected for the analysis. Real (RWS) and predicted wind speed (PWS) are chosen for all four sites to perform the analysis of the present approach. Surplus and discrepancy charge rates have been formulated to address the imbalance cost because of the discrepancy between RWS and PWS for determining the economic performance of the system. The PHE and fuel cell (FC) have been incorporated in this work to maximize the producer’s profit by minimizing the adverse impact of imbalance cost in the power network. Additionally, this paper includes moth-flame optimization (MFO), hippopotamus optimization algorithm (HOA), and sequential quadratic programming (SQP), which are different optimization algorithms, to analyze system risk. Value at Risk (VaR) and Conditional Value at Risk (CVaR) are employed as tools to assess system risk. The work also shows the effect of PHE and FC integration in a wind-included power system in terms of system risk. The regulated system, as well as the deregulated system (single-bus demand-side bidding (DSB) and double-bus DSB), have been considered for operating this presented approach. IEEE 14-bus system results indicate that incorporating PHE and FC greatly minimizes imbalance costs, enhances profitability, and improves system performance. Interestingly, the deregulated system with double demand-side bidding has up to a 37% profit gain as compared to the regulated systems. The methodology provides a robust framework for economic and risk-optimized integration of renewables in competitive electricity markets.