In the course of reduction of CO
2 emission, an increasing deployment of variable renewable generation such as PV and wind, whose output largely fluctuate according to weather and time, have been impacting an operation of in many power systems in the world. There are increasing needs for flexibility in all time domains. As the penetration of variable renewable increases, a kind of flexibility to store energy increases and the power system operation is required to cover daily, weekly, monthly and seasonal fluctuations of the generation of variable renewable utilizing a fleet of energy storage technologies. There are many efforts to realize long duration energy storage technologies, in addition to an existing pumped storage hydro, such as some types of batteries, heat storage technologies, and synthetic fuels. This paper presents a development of a methodology to annually optimize, by linear optimization method, the operation of traditional fuel storage and production-storage-utilization operation of new synthetic fuels such as hydrogen and Ammonia. We verified the proposed method in the Hokkaido area in Japan in 2030, as for coal storage for a coal power station, and production, storage and use of a new synthetic fuel produced from renewable energy curtailment.
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