Optimisation of Imbalance Cost for Wind Power Marketibility using Hydrogen Storage

Large scale trading of wind power in the electricity markets is constrained by the large imbalance costs associated with the wind power. The present short-term power markets are designed for trading conventional generation. For wind generation to participate in the short-term energy markets, lengthy wind power production forecasts are required. Since the wind power forecasts are never perfect, they lead to forecast errors in wind power prediction. The predicted wind power is bid in the power market in the 24 hours day ahead power market and that power is called contracted power. Due to the errors in the forecasting techniques, the wind power producers are penalized for the deviations from the contracted power, which lead to commercial risk to wind farm owners while advance contracting, known as imbalance cost. This paper addresses the problem of high imbalance costs and studies the optimal market structure for effective trading of wind power. The solution to the problem has been obtained with the use of grid connected wind hydrogen system. The paper presents the operation strategy for the minimization of imbalance costs by the use of hydrogen storage. Simulations are carried on a hypothetical system with the help of Matlab and their results are presented.