Analysis of the cooperation of electricity storage with renewable energy sources

Abstract

In connection with the dynamic development of distributed renewable energy sources, the problem of cannibalization arises. The production of individual Renewable Energy Sources (RES) units is highly correlated within a given technology. Low marginal costs of RES production drive down the wholesale prices during periods of high insolation and windspeed - profits of the producers decrease. Conversely, prices increase significantly during periods of low RES production - particularly windless, cold evenings. The answer to this issue is hybrid installations with energy storage systems (ESS). By using ESS, it is possible to control the energy produced by such a system appropriately, shifting production from low- to high-price hours (price arbitrage). This increases the profits coming from selling electricity on the Day-Ahead Market. In this publication, seven scenarios will be analyzed to determine the potential profits for energy storage system operating alone, with a wind farm, a photovoltaic farm, and both installations. In addition, analyses will be carried out on generation units without storage. This analysis will confirm which system is optimal from the point of view of maximizing the generated profit for the plant operator, which also translates into stabilizing the operation of the electricity grid.