Abstract
A promising solution to smart grid stability and reliability issues resulting from the influx of renewable sources, like wind and solar, is the incorporation of pumped hydro storage (PHS). Hence, it is important to investigate the benefits of adding PHS to power grids. To this end, a model for the day-ahead economic generation dispatch of a smart grid with prosumers and pumped hydro storage is formulated. The model is tested using modified data for Ontario’s power system. It is specified and solved with the Advanced Interactive Multidimensional Modelling System (AIMMS). An economic power output schedule for the gas-fired and PHS units in the grid is obtained. Also, the effect of the ramp rate of gas-fired units on grid operating cost is investigated; it is observed that the operating cost reduces with increase in ramp rate.