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This paper considers the impact of uncertain wind forecasts on the value of stored energy (such as pumped hydro) in a future U.K. system, where wind supplies over 20% of the energy. Providing more of the increased requirement for reserves from standing reserve sources could increase system operation efficiency, enhance wind power absorption, achieve fuel cost savings, and reduce CO 2 emissions. Generally, storage-based standing reserve's value is driven by the amount of installed wind and by generation system flexibility. Benefits are more significant in systems with low generation flexibility and with large installed wind capacity. Storage is uniquely able to stock up generated excesses during high-wind/low-demand periods, and subsequently discharge this energy as needed. When storage is combined with standing reserve provided from conventional generation (e.g., open-cycle gas turbines), it is valuable in servicing the highly frequent smaller imbalances
Black et al. (Thu,) studied this question.
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