A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment
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 who...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
IEEE
2021-01-01
|
| Series: | IEEE Access |
| Subjects: | |
| Online Access: | https://ieeexplore.ieee.org/document/9500199/ |
| _version_ | 1818456706765553664 |
|---|---|
| author | Josue Campos Do Prado Ugonna Chikezie |
| author_facet | Josue Campos Do Prado Ugonna Chikezie |
| author_sort | Josue Campos Do Prado |
| collection | DOAJ |
| description | 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 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 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. |
| first_indexed | 2024-12-14T22:30:56Z |
| format | Article |
| id | doaj.art-3884c44b3b7b46e78c7f9538d2c6263a |
| institution | Directory Open Access Journal |
| issn | 2169-3536 |
| language | English |
| last_indexed | 2024-12-14T22:30:56Z |
| publishDate | 2021-01-01 |
| publisher | IEEE |
| record_format | Article |
| series | IEEE Access |
| spelling | doaj.art-3884c44b3b7b46e78c7f9538d2c6263a2022-12-21T22:45:15ZengIEEEIEEE Access2169-35362021-01-01910618110619110.1109/ACCESS.2021.31008159500199A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR AssessmentJosue Campos Do Prado0https://orcid.org/0000-0003-1420-1762Ugonna Chikezie1https://orcid.org/0000-0002-3174-8578School of Engineering and Computer Science, Washington State University, Vancouver, WA~, USASchool of Engineering and Computer Science, Washington State University, Vancouver, WA~, USAThis 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 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 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.https://ieeexplore.ieee.org/document/9500199/Conditional value-at-risk (CVaR)electricity retailerenergy storagestochastic optimizationvirtual bidding |
| spellingShingle | Josue Campos Do Prado Ugonna Chikezie A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment IEEE Access Conditional value-at-risk (CVaR) electricity retailer energy storage stochastic optimization virtual bidding |
| title | A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment |
| title_full | A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment |
| title_fullStr | A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment |
| title_full_unstemmed | A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment |
| title_short | A Decision Model for an Electricity Retailer With Energy Storage and Virtual Bidding Under Daily and Hourly CVaR Assessment |
| title_sort | decision model for an electricity retailer with energy storage and virtual bidding under daily and hourly cvar assessment |
| topic | Conditional value-at-risk (CVaR) electricity retailer energy storage stochastic optimization virtual bidding |
| url | https://ieeexplore.ieee.org/document/9500199/ |
| work_keys_str_mv | AT josuecamposdoprado adecisionmodelforanelectricityretailerwithenergystorageandvirtualbiddingunderdailyandhourlycvarassessment AT ugonnachikezie adecisionmodelforanelectricityretailerwithenergystorageandvirtualbiddingunderdailyandhourlycvarassessment AT josuecamposdoprado decisionmodelforanelectricityretailerwithenergystorageandvirtualbiddingunderdailyandhourlycvarassessment AT ugonnachikezie decisionmodelforanelectricityretailerwithenergystorageandvirtualbiddingunderdailyandhourlycvarassessment |