877 / 2019-04-30 11:27:16

An Optimal Bidding Strategy Model Considering the Operation Characteristics of the Pumped Storage Hydropower Plants

pump storage hydropower plants,strategic bidding,electricity spot market,regional power grid

The electricity spot market construction of China is accelerating with the new round of China electricity market reform. Pumped storage hydropower plants are increasingly participating in the market as competitive players due to their excellent regulating characteristics. Based on the reality of China regional power grid, it is urgent to carry out the research of bidding strategies in the electricity spot market to achieve the maximum benefit. This paper presents an optimal bidding strategy model considering the operation characteristics of the pumping storage hydropower plants. This model is a bi-level optimization model, where the upper model maximizes the benefits of the pumped storage hydropower plants and the lower model minimizes the total cost of power system operation. The bidding prices of other units such as thermal power and wind power units are assumed as their marginal cost. The bi-level model is transformed into a single Mixed Integer Linear Programming problem based on Karush-Kuhn-Tucher conditions as well as strong duality theorem. Through an illustrative case study in the real-life power system in a certain area, the numerical results demonstrate that the model is able to improve the market competitiveness of the pumped storage hydropower plants and realize the maximum benefit.