Value of combining energy storage and wind in short-term energy and balancing markets

An algorithm is described that calculates the optimum dispatch of an electrical energy storage (EES) facility taking into account the short-term power exchange and the expected imbalance penalties of a wind farm. The effect of daily price variation, imbalance price spread, market closure lead-times, and wind contracting errors on the added value (AV) of an EES is shown for a range of different EES configurations. Finally, it is demonstrated that significant AV with more than one wind farm is possible where the combined rated power of wind is much greater than that of EES. (C) 2003 Published by Elsevier B.V.