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This paper deals with optimal placement of the energy storage units within a deregulated power system to minimize its hourly social cost. Wind generation and load are modeled probabilistically using actual data and a curve fitting approach. Based on a model of the electricity market, we minimize the hourly social cost using probabilistic optimal power flow (POPF) then use a genetic algorithm to maximize wind power utilization over a scheduling period. A business model is developed to evaluate the economics of the storage system based on the energy time-shift opportunity from wind generation. The proposed method is used to carry out simulation studies for the IEEE 24-bus system. Transmission line constraints are addressed as a bottleneck for efficient wind power integration with higher penetration levels. Distributed storage is then proposed as a solution to effectively utilize the transmission capacity and integrate the wind power more efficiently. The potential impact of distributed storage on wind utilization is also evaluated through several case studies.
Date of Publication: April 2013