Grid company income analysis based on pumped storage participating the spot market with various bidding strategies

Abstract

With the development of the electricity market in China, regulations are updated quickly and models adapted to the latest policies need to be developed urgently. This paper proposes a combined clearing model to make pumped storage units participate the spot market. Three income models of the grid companies are developed as well. A 39-bus test system is introduced for simulation and the results show that pumped storage could increase its revenue and bring cost reduction for the system when participating the spot market. The income of the grid company would experience a 35% increase after adopting the possible future policy.

Keywords

• Spot market
• Market clearing
• Pumped storage
• Bidding strategy
• Grid company income