A Robust Operation Strategy for Energy Storage Considering Uncertainty in Electricity Price

Abstract

Inaccurate price prediction may cause improper charging/discharging schedules of battery energy storage (BES) in electricity market, which further leads to less or even negative market profits of BES. On this condition, uncertainty in market prices should be fully considered when making operation strategies. In this paper, focusing on an independently operated BES in day-ahead and hour-ahead markets, a multi-stage robust optimal operation strategy is formulated considering uncertainty in multi-periods market prices. The robust optimization model is formulated seeking to maximize market revenues of BES within a given confidence level of price deviation. The max-min model can be converted into a mixed-integer linear programming (MILP) problem which can be easily computable. Case study results demonstrated the validity of the presented robust operation strategy of BES.