Short-term optimization of storage power plant operation under market conditions

Abstract

This paper deals with the optimization of storage power plant operation with a particular focus on market situation in the Latvian bidding area of the Nord Pool. Some currently already available storage options such as hydropower are considered, but attention is given to an emerging technology - hydrogen storage - as well. An algorithm for storage plant scheduling optimization is devised. In the case study, it is concluded that both technologies are capable of exploiting the price spread in the day-ahead electricity market. Another operational strategy apart from the price arbitrage is studied in this paper as well - cooperation with wind farms. Coordinated operation allows to decrease expenses caused by inaccurate wind generation forecasts.