Pumped Storage Power Station’s Capacity Allocation Model And Bidding Strategies In Electrical Energy Market And Ancillary Service Market

Pumped storage hydropower station plays an important role in achieving the goal of carbon peak and carbon neutralization,and promoting energy transformation in China.Pumped storage power station has flexible regulation function,which can effectively cut peak and fill valley,and promote new energy consumption.At the same time,pumped storage can be used as a large-scale reserve to ensure the power system’s safe and stable operation.Pumped storage power station also reduces the overall operation cost of the system.The importance of pumped storage power station in power system is self-evident.Since the introduction of several opinions on further deepening the reform of power system(ZF[2015]No.9),China’s power market has entered a period of rapid development.The National Development and Reform Commission proposed that the formation mechanism of pumped storage electricity price should be gradually improved,the independent market dominant position of pumped storage power stations should be established,and the power stations should be promoted to equally participate in the medium and long-term electricity trading,spot market trading,auxiliary service market,etc.The paper constructs capacity allocation model and bidding strategy model in electrical energy market and ancillary service market for pumped storage power station.The main contents include:Combined with the policy background of the new power reform,the paper first introduces the policy evolution and development status of pumped storage power stations in China,and analyzes the environment and trading rules of China’s power market.Secondly,pumped storage’s capacity allocation model in the energy and ancillary service markets is constructed.Then,a single-period bidding strategy optimization model between pumped storage power station and generators in energy and ancillary service markets is constructed.Based on the analysis of generators’bidding factors,the classical game equilibrium theory of power market is introduced to study the optimal behavior of generators in different market structures.Then,the paper applies game equilibrium model and economic withholding model to study the optimal bidding strategies of generators in power market,solved by the iterative algorithm and the double-layer particle swarm optimization algorithm.Finally,on the basis of the above model,pumped storage’s energy and ancillary capacity and bidding strategies are co optimized.Through the dynamic feedback between the bidding strategies of pumped storage and the market clearing price,pumped storage’s optimal bidding strategies in the continuous periods of an optimization cycle is studied.Through the research of the paper,the following conclusions are drawn:firstly,pumped storage in the market can pump more and generate more in a day,providing power and AGC in multiple periods,and the profit of participating in market is higher than the level of two-part electricity price.Secondly,the game equilibrium model has good stability,but the applicability is poor,while the stability and applicability of capacity holding model are good,so it is suitable to study the competitive equilibrium of the energy and AGC markets.The holding capacity of generators is related to the shape of bidding curve,and the competitive equilibrium result of holding bidding is profitable for all generators.Pumped storage is not an active holder in the market,so it can be quoted according to the marginal cost.Thirdly,pumped storage’s capacity allocation and bidding strategies co-optimization method is proved to be feasible and applicable.The paper explores the bidding strategies of pumped storage power station as an independent market participant,quantifies the profit space of pumped storage power station in the energy and ancillary service market.The paper results are wished to provide decision support for the formulation of market-oriented policy of pumped storage power station in China.