Joint optimization of generation and storage in the presence of wind

We study an independent grid where the penetration of wind energy is high and exploit the joint planning of energy storage and a renewable energy source, as it can potentially result in a more economical and efficient energy system. More specifically, we consider an energy system that consists of a gas-fired plant, and a small wind farm with a capacity for energy storage. We assume that the gas-fired plant has a maximum generation capacity that is no more than the electricity demand. We first propose an optimization model with known wind speed and electricity demand. Then we gradually extend this deterministic model to take into account the stochastic nature of the renewable energy source and electricity demand. Furthermore, we consider the possibility of connecting our system to the National Grid, which we import from or export to when our system has an energy shortage or surplus in meeting the demand. Our results provide helpful insights in planning the joint deployment of generation capacity and energy storage, and show that the system operates more efficiently and economically when it is connected to the National Grid.