Determination of Optimal Operation Strategy for CAES in Fluctuating-Hourly Electricity Market with High Renewable Wind Power Penetration (Case Study: Khorasan Regional Electricity Co.)

Background and With influx of sustainable and renewable energy with high penetration into the production system, Compressed Air Energy Storage (CAES) could be used for creation of an acceptable adequate and smooth Electricity production system. CAES plants operate on electricity markets by storing energy when electricity prices are low and producing electricity when prices are high. An essential condition for the profitability of the CAES in hybrid systems is appropriate strategy for CAES operation about the sale and purchase of energy. This study aimed to determine optimal operating strategy for CAES systems fluctuating-hourly electricity market with high penetration of renewable wind power.
In this study, with simulation of production system of Khorasan Regional Electricity Company power plants which among all, the theoretical optimal strategy provides the highest net income for the storage unit. But since the market price of the upcoming hourly-fluctuating market is not pre-determined, two prognostic and historical practical-operational strategies have used for Setting up compressed air energy storage system.
Findings: The results show that prognostic and historical practical-operational strategies, on average have 93% and 89% of theoretical optimal strategy s’ net income, respectively, in all six simulated capacities for compressed air energy storage system.
Discussion and Counclusion: Based on the results, it is necessary to use power storage in order to increase grid stability and reliability of production in hybrid systems with high renewable power penetration; because a Black-Start must be ready in grid for Possible Black-Out situations which could provide load of grid in the least possible time. Use a CAES could be a great way that not only guarantees reliability and stability of grid in emergencies, but also is economically feasible and have operational suitable profit.