Hybrid energy storage and generation planning with large renewable penetration

Energy storage is important in a power grid with high penetration of renewable energy, especially for isolated grids or micro-grids. Considering the different characteristics of energy storage devices and the different availability of renewable energy sources, planning a good portfolio of them is important for efficient system operation and investment cost minimization. In this paper we consider the planning problem as a chance-constrained optimization problem and solve the problem using scenario approximation. To reduce the computational time, we formulate the original problem as a consensus problem, and employ the alternating directional method of multipliers to solve the optimization problem in a distributed manner. The results potentially help make decisions on energy storage and renewable generation planning, and guide policy making related to renewable energy sources.