Social Welfare Maximization of Competitive Congested Power Market Considering Wind Farm and Pumped Hydroelectric Storage System

Abstract

The utilization of wind energy sources with energy storage systems has been increased in the power sector to satisfy the consumer’s energy demand with minimum price. This paper presents the impact of a wind farm (WF) and pumped hydroelectric storage (PHS) system in the competitive electricity market under a congested transmission system. The PHS system is used to compensate for the deviation of WF generation in the real-time electricity market. To investigate the impact of the proposed method, initially, the market-clearing power problem is solved without consideration of WF and PHS systems, and again it is solved with the WF and PHS systems. The optimal location of the WF and PHS systems is decided by the bus sensitivity factor (BSF) of these systems. The analysis is carried out by using generator sensitivity factor (GSF) with the help of the moth flame optimization (MFO) algorithm and thereby calculating market clearing price (MCP) and market clearing volume (MCV). The MFO algorithm is used here for the first time for solving the congested market-clearing power problem with the integration of WF and PHS systems under deregulated environment. The presented approach shows the improvement of social welfare after the placement of WF and PHS in the congested deregulated system. Modified IEEE 30 bus system is used to solve the market-clearing power problem and results obtained from the MFO algorithm are compared with the firefly algorithm (FA). Three different real-time wind speed data have been considered here to verify the proposed approach with uncertainty and the continuously changing nature of wind flow. It is discovered that social welfare is improved with the quantity addition of wind power, regardless of optimization techniques.