Application of small-scale compressed air energy storage in the daily operation of an active distribution system

While compressed air energy storage (CAES) has many applications in the field of generation and transmission power systems based on the state-of-the-art, this paper proposes the application of small-scale CAESs (SCAESs) in form of a storage aggregator in the daily operation of an active distribution system (ADS), joining the distribution system operator (DSO) for the participation in the day-ahead (DA) wholesale market. An innovative two-agent modeling approach is formulated. The first agent is responsible for aggregating SCAES units and the profit maximization of the aggregator is based on the distribution local marginal price. The DSO as the second agent receives the DA scheduling from the independent SCAES aggregator and is thus responsible for the secure operation of the ADS, utilizing solar and dispatchable distributed generation (DG) as well as purchasing power from the wholesale market. Linear programming is used for the formulation and optimization of the SCAES aggregator, while a bi-objective optimization algorithm (with the objectives of minimum operating cost as well as minimum power loss and emissions in different scenarios) is employed for DSO scheduling. The results show that the CAES aggregator can offer a considerable impact for power loss reduction, specifically, when diesel generators are not committed in the system operation (i.e., where emission has very low values between 10,000 and 12000 kg). Additionally, the CAES aggregator could reduce the operation costs of the grid in a wide range of operations, even though for the scenario in which the CAES units are not under the control of the DSO anymore and also are scheduled to maximize their own profit. Moreover, results demonstrated that CAES units can be a significant voltage control device for a distribution grid with different objectives. Finally, some conclusions are duly drawn. • This paper proposes the application of small-scale compressed air energy storage (SCAESs). • An innovative two-agent modeling approach is formulated. • Linear programming is used for the formulation and optimization of the SCAES aggregator. • Bi-objective optimization algorithm is employed for distribution system operator scheduling.