Representing Short-Term Uncertainties in Capacity Expansion Planning Using an Rolling-Horizon Operation Model

Flexible resources such as batteries and demand-side management technologies are needed to handle future large shares of variable renewable power. Wind and solar power introduce more short-term uncertainty that have to be considered when making investment decisions as it significantly impacts the value of flexible resources.

In this work we present a method for using duals from a rolling horizon operational model, with wind power uncertainty and market representations, to represent power system operation in an investment problem. The method is based on benders decomposition and special considerations are made due to the nature of the rolling horizon operational framework.