Dynamic multi-stage dispatch of isolated wind–diesel power systems

• Optimal decision-making model for isolated hybrid wind–diesel power system is proposed.
• Wind power uncertainty and conditional operating cost are considered.
• Battery wear cost of the energy storage system is included in the model.
• The results are compared with deterministic dispatch strategies.

An optimal dispatch strategy is crucial for an isolated wind–diesel power system to save diesel fuel and maintain the system stability. The uncertainty associated with the stochastic character of the wind is, though, a challenging problem for this optimization. In this paper, a dynamic multi-stage decision-making model is proposed to determine the diesel power output that minimizes the cost of running and maintaining the wind–diesel power system. Optimized operational decisions for each time period are generated dynamically considering the path-dependent nature of the optimal dispatch policy, given the plausible future realizations of the wind power production. A numerical case study is analyzed and it is demonstrated that the proposed stochastic dynamic optimization model significantly outperforms the traditional deterministic dispatch strategies.