| Title |
Profit Maximization Strategy Considering the Capacity Payment to a Photovoltaic Power Plant with an Energy Storage System According to the Forecast Error: Focusing on Korean Case |
| Authors |
고웅(Woong Ko) ; 최형진(Hyeong-Jin Choi) |
| DOI |
https://doi.org/10.5370/KIEE.2022.71.4.574 |
| Keywords |
Energy storage system; forecast error; capacity payment; photovoltaic power plant; profit maximization |
| Abstract |
Distributed energy resources can be aggregated for the purpose of enhancing the visibility in distribution grids and trading power on electricity markets. Although aggregated resources can bid their available capacity into the market in a similar way to conventional generators, their available capacity has low reliability due to uncertainty of these resources. Adequate policies for aggregated resources are needed to support investment in distributed energy industries and to manage the electricity market risk resulted in the unreliable capacity. In this study, we propose a profit maximization strategy for a photovoltaic power plant with an energy storage system. The electricity market model considers the electricity market design for aggregated resources in South Korea. The penalties for forecast error are proposed to mitigate imbalances of the available capacity. The effects of proposed method are evaluated in comparison with the conventional settlement process of aggregated resources |