The Strategy Of Pumped Storage Power Stations Participating In Joint Bidding In Multiple Electricity Markets

Under the overall guidance of China’s "30·60" dual carbon target and during the critical period of energy structure transformation,China has made long-term layout and policy support for the development of pumped storage power stations,committed to promoting the sustainable development of pumped storage power stations.The development of pumped storage power stations also faces urgent problems to be solved,such as difficulty in matching the development scale with the development scale of the power system,difficulty in guiding early investment,and difficulty in reflecting the value of the scarce system abundant capacity provided by the power stations.It is urgent to solve the above problems by establishing the market trading entity status of pumped storage power stations,improving the revenue and trading mechanisms of pumped storage power stations,and researching bidding strategies for pumped storage power stations.Through international practice and a large number of domestic research simulations,it has been shown that as an independent electricity market entity,pumped storage power plants participating in electricity market trading bidding can improve economic efficiency and promote the recovery of their fixed cost investment.In the context of China’s electricity market reform,this paper conducts a study on the bidding strategy of pumped storage power stations participating in the combined electricity market.This paper first constructs a multi time scale bidding strategy model for pumped storage power stations participating in the medium and long term electric energy market and spot electric energy market during the market transition phase.Then,a multi time scale and multi product dimension bidding strategy model is constructed for the participation of pumped storage power stations in the capacity market,electric energy market,and auxiliary service market during the mature stage of the market.This paper first provides a detailed analysis of the electricity market environment and future development trends in China,and summarizes the current situation of pumped storage power stations participating in the electricity market in various regions of China.Subsequently,three stages of participation of pumped storage power stations in the electricity market are divided,and the revenue mechanisms of power stations in different market stages are clarified.Secondly,in the transitional stage of the market,it is necessary to first clarify the transaction process for pumped storage power stations to participate in the multi time scale electricity market.Assuming that pumped storage power stations are physically cleared in the medium to long term market,a decomposition model for the medium and long term trading electricity of pumped storage power stations is established to preliminarily determine the typical daily operating conditions of the pumped storage power station at various time periods.On this basis,a bidding model is constructed for power stations to participate in the medium and long-term electricity energy market and the spot electricity energy market during the market transition stage.Reinforcement learning algorithms are used to find the optimal bidding strategy for pumped storage power stations,and the optimal priority search is used to optimize the objective function.Finally,in the mature stage of the market.based on the model in Chapter 3,the capacity market and auxiliary service market are introduced into the model,and a combined market bidding strategy model is constructed for pumped storage power stations to participate in the capacity market.auxiliary service market,and electric energy market.A double-layer optimization model is constructed to solve the optimal allocation of pumped storage power station capacity at multiple time scales in the outer layer,and to search for the optimal bidding strategy for pumped storage power stations at multiple product scales in the inner layer.Through the construction of models and numerical simulations,it can be concluded that the profit mechanisms of pumped storage power stations vary in different market stages,and there are differences in bidding decisions for pumped storage power stations.Due to the improvement of the revenue mechanism,in the simulation,the revenue of pumped storage power stations in the mature stage is slightly higher than that in the transitional stage.and the revenue in the transitional stage is slightly higher than that in the initial stage.As an independent market entity,the revenue of pumped storage power stations is slightly higher than that when they are regulated by the power grid.Under a market-oriented trading mechanism,pumped storage power stations will fully convert their storage capacity.adjust their pumping and power generation conditions,and may purchase electricity at high prices.Pumped storage power stations use their cost advantage to obtain the result of full electricity or full electricity product clearance when conducting bidding strategies for volume bidding.The example results validate the feasibility of the bidding model.and the obtained results are in line with the actual operation arrangement rules of pumped storage power stations,which is in line with the expected significant increase in power station revenue under marketization.The bidding strategy model constructed in this article can provide reference for pumped storage power stations to participate in market bidding decisions.The bidding strategy model constructed in this paper can provide bidding decision support for pumped storage power stations participating in electricity market transactions at different market development stages.Preliminary determination of the operating conditions of pumped storage power stations in the spot market at different time periods through the decomposition of medium and long-term trading electricity can reduce the difficulty of model solving and provide decision-making support for pumped storage power stations participating in multi market operation decisions.Consider the capacity market into the market trading model,verify the importance of the capacity market for energy storage cost recovery,and provide reference for the development of China’s capacity market mechanism and capacity compensation level.