A two-stage optimal operation strategy of distributed pumped storage power plant and new energy power generation jointly participating in spot market

Abstract

With the advancement of China’s electricity spot market construction， it has become a prevailing trend for new energy to participate in the spot market. However， the output uncertainty of new energy debilitates its market competitiveness. As a mature energy storage technology， distributed pumped-storage power plants can cooperate with new energy generation and stabilize its output fluctuations. To this end， a two-stage stochastic optimization model for the participation of a consortium of distributed pumped storage plants and new energy generation in the day-ahead and real-time markets under a dual settlement mechanism in the spot market is investigated. Conditional value-at-risk （CVaR）is introduced to quantify the impact of uncertainty in new energy output and market electricity prices on the joint venture’s revenue， and to optimize the consortium’s bidding in the day-ahead market stage and rolling self-dispatch in the real-time balancing market stage. The example analysis shows that the proposed method can increase the revenue of the joint venture in the spot market. Finally， the impact of the risk preference factor and the storage capacity of the pumped storage plant on the joint venture’s revenue is discussed.

Keywords

• distributed pumped storage power plant
• new energy generation
• joint venture
• stochastic optimization
• spot market
• cvar