Forward thresholds for operation of pumped-storage stations in the real-time energy market

Goran Vojvodic, Ahmad I. Jarrah*, David P. Morton

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

Pumped-storage hydroelectric plants are very valuable assets on the electric grid and in electric markets as they are able to pump and store water for generation, thus allowing for grid-level storage. Within the realm of short-term energy markets, we present a model for determining forward-looking thresholds for making generation and pumping decisions at such plants. A multistage stochastic programming framework is developed to optimize the thresholds with uncertain system prices over the next three days. Tractability issues are discussed and a novel method based on an implementation of the scatter search algorithm is proposed. Given the size of the multistage stochastic programming formulation, we argue that this novel method is a more accurate representation of the decision process. We demonstrate model stability and quality, and show that the forward thresholds obtained using a stochastic programming framework outperform the forward thresholds from a deterministic model, and thus can lead to efficiency gains for both the generation unit owner and the overall system in the real-time market.

Original languageEnglish (US)
Pages (from-to)253-268
Number of pages16
JournalEuropean Journal of Operational Research
Volume254
Issue number1
DOIs
StatePublished - Oct 1 2016

Keywords

  • Energy markets
  • Large scale optimization
  • Metaheuristics
  • OR in energy
  • Stochastic programming

ASJC Scopus subject areas

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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