Managing wind-based electricity generation in the presence of storage and transmission capacity

• Main Authors: ZHOU, Yangfang (Helen), SCHELLER-WOLF, Alan, SECOMANDI, Nicola, SMITH, Stephen
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Markov decision process; wind-based electricity generation; energy storage; negative electricity prices; real options; Environmental Sciences; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4958; https://ink.library.smu.edu.sg/context/lkcsb_research/article/5957/viewcontent/Zhou__et_al_2018__SMU_Ink__Managing_wind_based_electricity_generation_in_the_presence_of_storage_and_transmission_capacity___Copy.pdf
• Institution: Singapore Management University

We investigate the management of a merchant wind energy farm co‐located with a grid‐level storage facility and connected to a market through a transmission line. We formulate this problem as a Markov decision process (MDP) with stochastic wind speed and electricity prices. Consistent with most dereg...