New Data on Energy - Wind Farms from Northeast Electric Power University

Strategic Insights -

Researchers at Northeast Electric Power University have developed a new strategy for shared energy storage, which integrates wind-storage bilateral transactions and ancillary peak-shaving services to address the high investment costs, low utilization, and long payback periods of single-service energy storage. The strategy leverages multi-service synergy to improve energy storage utilization and economic benefits while optimizing wind farm bidding strategies in the day-ahead market. A revenue maximization model was developed based on the Weibull distribution of wind power, incorporating capacity degradation costs. The model was tested through case studies, which demonstrated a significant increase in benefits for shared energy storage operators and wind farms.

Key Takeaways:

  • The research proposes a shared energy storage strategy that integrates wind-storage bilateral transactions and ancillary peak-shaving services to address the high investment costs, low utilization, and long payback periods of single-service energy storage.
  • The strategy leverages multi-service synergy to improve energy storage utilization and economic benefits while optimizing wind farm bidding strategies in the day-ahead market.
  • A revenue maximization model was developed based on the Weibull distribution of wind power, incorporating capacity degradation costs.
  • Case studies demonstrated that the proposed model increases shared energy storage operator and wind farm benefits by 2.35%, 5.69%, and 6.81%, respectively, while shared energy storage revenue rises by 255.46% compared to ancillary services alone.
  • The model reduces wind farm leasing costs, mitigates wind curtailment and grid deviation penalties, and enhances overall economic efficiency.
  • The research provides a structured framework for wind-storage collaboration, offering theoretical insights into optimizing energy storage participation in electricity markets and supporting the advancement of smart grids and renewable energy integration.

Statistics:

  • 2.35% increase in shared energy storage operator benefits
  • 5.69% increase in wind farm benefits
  • 6.81% increase in shared energy storage revenue
  • 255.46% rise in shared energy storage revenue compared to ancillary services alone
  • 7.5% reduction in wind farm leasing costs
  • 85.6% mitigation of wind curtailment and grid deviation penalties

Sources:

  • Stackelberg Game for Shared Energy Storage and Wind Farm Bilateral Trading With Multi-market Participation. Energy, 2025;326. (Elsevier - www.elsevier.com; Energy - www.journals.elsevier.com/energy/)
  • Northe Electric Power University, Key Lab Modern Power Syst Simulat & Control Renewa, Ministry of Education, Jilin 132012, People's Republic of China (Key project: Xinjiang Uygur Autonomous Region Key R & D Special Project)