Optimizing investment of pumped hydro storage system for renewable energy future

Subject Areas : International Relations

Zohreh  Goudarzi ¹ (Department of Industrial Engineering, Faculty of Engineering, Alzahra University, Tehran, Iran.)
Jafar  Bagherinejad ² (Department of Industrial Engineering, Faculty of Engineering, Alzahra University, Tehran, Iran.)
Majid  Rafiee ³ (Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran)
Amir Abolfazl  Souratgar ⁴ (Department of Electrical Engineering, Amirkabir University of Technology, Tehran, Iran.)

Received: 2022-12-13 Accepted : 2023-04-06 Published : 2023-06-01

Keywords: Optimal sizing, Benders decomposition, energy storage system, Mixed complementary problem,

Abstract :

Renewable energies are increasingly being considered for use in electricity networks. The high variability of consumption, and the instability of renewable energies, necessitate the use of energy storage systems. The problem of optimizing investment for an energy storage system is formulated here. The proposed model, in particular, determines the optimal size of the energy storage system based on maximizing social welfare. The problem is formulated as a mixed-integer linear programming (MILP), and an equivalent mixed complementary problem (MCP) to solve a quadratic system of nonlinear equations. Due to its high efficiency, the Benders decomposition technique is used to solve the proposed model. The results of solving a 300-node system that cannot be solved by CPLEX using the Benders decomposition technique are presented. The results demonstrate that the proposed method can efficiently find a solution while considering the network’s limitations, increasing social welfare. Finally, the performance of the MILP and MCP models for various numerical cases is compared. The findings of this paper indicate that by increasing the dimensions of the problem, the performance of the MCP model improves compared to the MILP model in terms of computational time and the value of the objective function.

References:

Abadie, L.M., & Goicoechea, N. (2022). Optimal management of a mega pumped hydro storage system under stochastic hourly electricity prices in the Iberian Peninsula. Energy, 252, 123974, doi: 10.1016/J.ENERGY.2022.123974.

Ali, S., Stewart, R.A., & Sahin, O. (2021). Drivers and barriers to the deployment of pumped hydro energy storage applications: Systematic literature review. Clean. Eng. Technol., 5, 100281, doi: 10.1016/J.CLET.2021.100281.

Arteaga, J., Zareipour, H., & Amjady, N. (2021). Energy Storage as a Service: Optimal sizing for Transmission Congestion Relief. Appl. Energy, 298, doi: 10.1016/j.apenergy.2021.117095.

Barbour, E., Wilson, I.A.G., Radcliffe, J., Ding, Y., & Li, Y. (2016). A review of pumped hydro energy storage development in significant international electricity markets. Renew. Sustain. Energy Rev., 61, 421–432, doi: 10.1016/J.RSER.2016.04.019.

Benalcazar, P. (2021). Optimal sizing of thermal energy storage systems for CHP plants considering specific investment costs: A case study. Energy, 234, doi: 10.1016/j.energy.2021.12132.

Canales, F.A., Jurasz, J.K., Guezgouz, M., & Beluco, A. (2021). Cost-reliability analysis of hybrid pumped-battery storage for solar and wind energy integration in an island community. Sustain. Energy Technol. Assessments, doi: 10.1016/j.seta.2021.101062.

Dvorkin, Y., Fernandez-Blanco, R., Wang, Y., Xu, B., S. Kirschen, D., Pandzic, H., Watson, J.P., & Silva-Monroy, C.A. (2018). Co-planning of investments in transmission and merchant energy storage. IEEE Trans. Power Syst., doi: 10.1109/TPWRS.2017.2705187.

Ferris, M.C., & Munson, T.S. (2000). Complementarity problems in GAMS and the PATH solver. J. Econ. Dyn. Control, doi: 10.1016/s0165-1889(98)00092-x.

Fertig, E., Heggedal, A.M., Doorman, G., & Apt, J. (2014). Optimal investment timing and capacity choice for pumped hydropower storage. Energy Syst., doi: 10.1007/s12667-013-0109-x.

Gardiner, D., Schmidt, O., Heptonstall, P., Gross, R., & Staffell, I. (2019). Quantifying the impact of policy on the investment case for residential electricity storage in the UK. Journal of Energy Storage, 27, doi: 10.1016/j.est.2019.101140.

Gaudard, L. (2015). Pumped-storage project: A short to long term investment analysis including climate change. Renewable and Sustainable Energy Reviews., doi: 10.1016/j.rser.2015.04.052.

Gravelle, H.S.E. (1976). The Peak Load Problem with Feasible Storage. Econ. J., 86 (342), 256, doi: 10.2307/2230746.

Guittet, M., Capezzali, M., Gaudard, L., Romerio, F., Vuille, F., & Avellan, F. (2016). Study of the drivers and asset management of pumped-storage power plants historical and geographical perspective. Energy, 111, 560–579, doi: 10.1016/J.ENERGY.2016.04.052.

Haas, J., Prieto-Miranda, L., Ghorbani, N., & Breyer, C.(2022). Revisiting the potential of pumped-hydro energy storage: A method to detect economically attractive sites. Renew. Energy, 181, 182–193, doi: 10.1016/J.RENENE.2021.09.009.

Hassan, A., & Dvorkin, Y. (2018). Energy Storage Siting and Sizing in Coordinated Distribution and Transmission Systems. IEEE Trans. Sustain. Energy, 9 (4), 1692–1701, doi: 10.1109/TSTE.2018.2809580.

Hesamzadeh, M.R., Rosellon, J., & Vogelsang, I. (2020). An introduction to transmission network investment in the new market regime. in Lecture Notes in Energy, doi: 10.1007/978-3-030-47929-9_1.

Huang, Q., Xu, Y., & Courcoubetis, C. (2020). Stackelberg competition between merchant and regulated storage investment in wholesale electricity markets. Appl. Energy, doi: 10.1016/j.apenergy.2020.114669.

Hunt, J.D., Zakeri, B., Nascimento, A., & Brandão, R. (2022). Pumped hydro storage (PHS). Storing Energy with Spec. Ref. to Renew. Energy Sources, 37–65, doi: 10.1016/B978-0-12-824510-1.00008-8.

Javed, M.S., Zhong, D., Ma, T., Song, A., & Ahmed, S. (2020). Hybrid pumped hydro and battery storage for renewable energy based power supply system. Appl. Energy, 257, 114026, doi: 10.1016/J.APENERGY.2019.114026.

Kalvelagen, E. (2002). Benders decomposition with GAMS. Amsterdam Optim. Model. Gr. Washington, DC, USA

Korpås, M., & Botterud, A. (2020). Optimality Conditions and Cost Recovery in Electricity Markets with Variable Renewable Energy and Energy Storage. MIT Cent. Energy Environ. Policy Res., no. Mar 2020, [Online]. Available: http://ceepr.mit.edu/files/papers/2020-005.pdf

Lin, S. Ma, T., & hahzad Javed, M.S. (2020). Prefeasibility study of a distributed photovoltaic system with pumped hydro storage for residential buildings. Energy Convers. Manag., 222, 113199,doi: 10.1016/J.ENCONMAN.2020.113199.

Liu Y., & Woo, C.K. (2017). California’s renewable generation and pumped hydro storage’s profitability. Electr. J., 30 (3), 15–22, doi: 10.1016/J.TEJ.2017.02.009.

Liu, X., Li, N., Mu, H., Li, M., & Liu, X. (2021). Techno-energy-economic assessment of a high capacity offshore wind-pumped-storage hybrid power system for regional power system. J. Energy Storage, 41, 102892, doi: 10.1016/J.EST.2021.102892.

Liu, J., Chen, X., Xiang, Y., Huo, D., & Liu, J. (2021). Optimal planning and investment benefit analysis of shared energy storage for electricity retailers. Int. J. Electr. Power Energy Syst., doi: 10.1016/j.ijepes.2020.106561.

Mousavi, N., Kothapalli, G., Habibi, M. Khiadani, D., & Das, C.K. (2019). An improved mathematical model for a pumped hydro storage system considering electrical, mechanical, and hydraulic losses. Appl. Energy, doi: 10.1016/j.apenergy.2019.03.015.

Murphy, J. (2013). Benders, Nested Benders & Stochastic Programming: An Intuitive Introduction. arXiv Prepr. arXiv1312.3158, 2013, [Online]. Available: http://arxiv.org/abs/1312.3158

Nazari, A.A., Keypour, R., & Amjady, N. (2021). Joint investment of community energy storage systems in distribution networks using modified Nash bargaining theory. Appl. Energy, 301, doi: 10.1016/j.apenergy.2021.117475.

Nguyen, D.T. (1976). Problems of Peak Loads and Inventories.. Bell J Econ, 7 (1), 242–248, doi: 10.2307/3003199.

Rehman, S., Al-Hadhrami, L.M., & Alam, M.M. (2015). Pumped hydro energy storage system: A technological review. Renewable and Sustainable Energy Reviews, doi: 10.1016/j.rser.2014.12.040.

Saber, H., Moeini-Aghtaie, M., & Ehsan, M. (2018). Developing a multi-objective framework for expansion planning studies of distributed energy storage systems (DESSs). Energy, 157, 1079–1089, doi: 10.1016/j.energy.2018.06.081.

Spisto, A. & Hrelja, N. (2016). The Economic and Environmental Assessment of Electricity Storage Investments. Any Need for Policy Incentives?. Energy Procedia, 106, 122–133, doi: 10.1016/J.EGYPRO.2016.12.110.

Steffen B., & Weber, C. (2013). Efficient storage capacity in power systems with thermal and renewable generation. Energy Econ., 36, 556–567, doi: 10.1016/j.eneco.2012.11.007.

Tómasson, E., Hesamzadeh, M.R., & Wolak, F.A. (2020). Optimal offer-bid strategy of an energy storage portfolio: A linear quasi-relaxation approach. Appl. Energy, 260, 114251, doi: 10.1016/J.APENERGY.2019.114251.

Xu, B., Wang, Y., Dvorkin, Y., Fernandez-Blanco, R., Silva-Monroy, C.A., Watson, J.P., & S. Kirschen. (2017). Scalable Planning for Energy Storage in Energy and Reserve Markets. IEEE Trans. Power Syst., 32 (6), 4515–4527, doi: 10.1109/TPWRS.2017.2682790.

Yang, Z., Sun, G., Behrens, P., Qstergaard, P.A., Egusquiza, M., Egusquiza, E., Xu, B., Chen, D., & Patelli, W. (2021). The potential for photovoltaic-powered pumped-hydro systems to reduce emissions, costs, and energy insecurity in rural China. Energy Convers. Manag. X, 11, 100108, doi: 10.1016/J.ECMX.2021.100108.

Zhang X., & Conejo, A.J. (2018). Coordinated investment in transmission and storage systems representing long- and short-term uncertainty. IEEE Trans. Power Syst., 33 (6), 7143–7151, doi: 10.1109/TPWRS.2018.2842045.