The economic effect of storage in systems with high penetration of renewable sources

Power system operational and economic challenges are raised from increasing penetration of variable energy sources. Reliable operation of transmission and distribution systems with high penetration of renewable resources can be achieved using storage. In this paper, a flexible AC-OPF dispatch algorithm (F-OPF) is presented and two different types of storage devices are considered to address the problem: battery storage and pumped hydro storage. Battery Energy Storage Systems (BESS) are located in the transmission level and Plug-in Electric Vehicle (PEV) batteries in the distribution level. Different percentage scenarios of storage devices and renewable sources are tested on the IEEE 24 bus system. Wind and solar sources and storage devices are considered in specific buses in the standard 24 bus system. The impact of different penetration levels of renewables and storage is examined and the total operational cost of the system is calculated by the F-OPF. A predetermined day-ahead schedule is used for all generation units and storage devices and kept constant for all different scenarios of penetration for comparison purposes.