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Wind power producers face many regulation costs in deregulated environment, which remarkably lowers the value of wind power in comparison with the conventional sources. One of these costs is associated with the real-time variation of power output and being paid in frequency control market according to the variation band. In this regard, this paper presents a new approach to the scheduling and operation of battery energy storage installed in wind generation system. This approach depends on the statistic data of wind generation and the prediction of frequency control market prices to determine the optimal charging and discharging of batteries in real-time, which ultimately gives the minimum cost of frequency regulation for wind power producers. The optimization problem is formulated as the trade-off between the decrease in regulation payment and the increase in the cost of using battery energy storage. The approach is illustrated in the case study and the results of simulation show its effectiveness.

A Novel Approach of Battery Energy Storage for Improving Value of Wind Power in Deregulated Markets