Economic Value Assessment and Optimal Sizing of an Energy Storage System in a Grid-Connected Wind Farm
- 주제(키워드) wind farm , energy storage system , economic value assessment , optimal sizing , dynamic programming , Markov decision process
- 주제(기타) Energy & Fuels
- 설명문(일반) [Choi, Dong Gu] Pohang Univ Sci & Technol POSTECH, Dept Ind & Management Engn, 77 Cheongam Ro, Pohang 37673, Gyeongbuk, South Korea; [Min, Daiki] Ewha Womans Univ, Sch Business, 52 Ewhayeodae Gil, Seoul 03760, South Korea; [Ryu, Jong-hyun] Hongik Univ, Coll Business Management, 2639 Sejong Ro, Jochiwon Eup 30016, Sejong Si, South Korea
- 등재 SCIE, SCOPUS
- 발행기관 MDPI
- 발행년도 2018
- URI http://www.dcollection.net/handler/ewha/000000151715
- 본문언어 영어
- Published As http://dx.doi.org/10.3390/en11030591
초록/요약
This study identifies the optimal management policy of a given energy storage system (ESS) installed in a grid-connected wind farm in terms of maximizing the monetary benefits and provides guidelines for defining the economic value of the ESS under optimal management policy and selecting the optimal size of the ESS based on economic value. Considering stochastic models for wind power and electricity price, we develop a finite-horizon periodic-review Markov decision process (MDP) model to seek the optimal management policy. We also use a simple optimization model to find the optimal storage capacity and charging/discharging capacity of the ESS. By applying our analytic approach to a real-world grid-connected wind farm located in South Korea, we verify the usefulness of this study. Our numerical study shows that the economic value of the ESS is highly dependent on management policy, wind electricity variability, and electricity price variability. Thus, the optimal size of ESS should be carefully determined based on the locational characteristics and management policy even with limited investments. Furthermore, this study provides a meaningful policy implication regarding how much of a subsidy the government should provide for installing ESS in a wind farm.
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