Sizing of an energy storage connected to a wind farm in an energy market

Global warming and excessive use of non-renewable energy resources are considered some of the most serious problems that need to be solved. Renewable and sustainable energy sources such as wind generation offer a solution to this problem and are thus gaining more importance. The wind power tends to be fluctuating due to intermittency of wind speed which varies in unpredictable ways. Wind energy fluctuates, which can result in frequency and voltage deviations in the grid. In this paper, a design of energy storage, which can be utilized in the energy market, is described. The objective of the energy storage is to reduce the effects of intermittent power generated from wind farms. The problem is formulated as an optimization problem in which the objective function measures the annual revenue gained from utilizing the storage in the energy market. The result of the optimization gives the optimal size of energy storage that maximizes the annual revenue. Two energy storage operation strategies combined with two market scenarios are discussed using realistic wind power and energy market price data.