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Optimal operation method coping with uncertainty in multi-area small power systems

1 Department of Electrical and Electronics Engineering, University of the Ryukyus, 1 Senbaru, Nishihara-cho, Nakagami, Okinawa 903-0213, Japan
2 Hawaii Natural Energy Institute, University of Hawaii, Manoa, Honolulu, Hawaii 96822, USA
3 Institute of Materials and Systems for Sustainalbility (IMaSS), Nagoya University, Furo-cho, Chikusa-ku, Nagoya, 464-8603, Japan

Topical Section: Smart Grids and Networks

Japan contains a vast number of isolated islands. Majority of these islands are powered by diesel generators (DGs), which are operationally not economical. Therefore, the introduction of renewable energy systems (RESs) into these area is very much vital. However, the variability of RESs as a result of weather condition as well as load demand , battery energy storage system (BESS) is brought into play. Demand response (DR) programs have also been so attractive in the energy management systems for the past decades. Among them, the real-time pricing (RTP) has been one of the most effective demand response program being utilized. This program encourages the customer to increase or reduce the load consumption by varying the electricity price. Also, due to the increase in power transaction market, Japan electric power exchange (JEPX) has established spot (day-ahead), intraday hour-ahead, and forward market programs. This paper utilizes day-ahead and hour-ahead markets, since these markets can make it possible to deal with uncertainty related to generated power fluctuations. Therefore, this paper presents the optimal operation method coping with the uncertainties of RESs in multi-area small power systems. The proposed method enables flexibility to correspond to the forecasting error by providing two kinds of power markets among multi-area small power systems and trading the shortage and surplus powers. Furthermore, it accomplishes a stable power supply and demand by RTP. Thus, the proposed method was able to reduce operational cost for multi-area small power systems. The process of creating operational plan for RTP, power trading at the markets and the unit commitment of DGs are also presented in this paper. Simulation results corroborate the merit of the proposed program.
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