Research Information System
9th North American Conference on Industrial Engineering and Operations Management, Maryland, United States Of America, 4 - 06 June 2024, pp.785-794, (Full Text)
In today's world electric system, where decentralization, democratization, and decarbonization are gaining importance, renewable energy sources play a significant role in electricity production. Wind energy, which has a competitive levelized cost of energy among renewables is considered as one of the major elements of the future energy mix. However, the intermittent nature of wind energy can cause stability issues in the grid and decrease financial efficiency. Battery energy storage systems (BESSs) have become popular as wind farm energy storage units due to the significant advantages they provide in solving these issues. Lithium-ion batteries are frequently integrated into wind farms as relatively mature technology owing to their superior features such as large power density. Still, deciding the optimal size and operation scheduling of the BESS is essential to enhance the economic benefits of the BESS integration project. In this study, a techno-economic nonlinear optimization model (NLP) is proposed to maximize the profit of an onshore wind farm in Turkey that participates in the day-ahead electricity market (DAM) within the Turkish Renewable Energy Resources Support Mechanism (YEKDEM). This model includes battery degradation cost and it can be used to analyze the profitability of the different market participation scenarios with BESS.