Energy storage system and demand response program effects on stochastic energy procurement of large consumers considering renewable generation

Abstract

The stochastic energy procurement problem (SEPP) of large electricity consumer (LEC) with multiple energy procurement sources (EPSs) is proposed in this study. Also, the effects of demand response program (DRP) and energy storage system (ESS) on SEPP are studied in this work. The EPSs contain renewable energy sources (RESs), which include photovoltaic (PV) system and wind‐turbine (WT), power market (PM), bilateral contracts and self‐generation units. Also, the ESS (like as battery) and DRP are integrated in the SEPP by decision‐maker of LEC to reduce the expected energy procurement cost. In the SEPP, the uncertainty models of market price, load and output power of RES (PV and WT) are considered. The normal distribution is used to generate scenarios for price, load and errors of temperature and insulation for PV output power uncertainty modelling. Also, the Weibull distribution is used to generate scenarios for wind speed for WT output power uncertainty modelling. Furthermore, the fast‐forward selection based on Kantorovich distance approach is used for scenarios reduction. Actually, a case study is used to illustrate the capability and efficiency of the proposed SEPP.