# Capacity Allocation Method of Pumped-Storage Power Station for Multi-Level Market in New Power System

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## Abstract

**:**

## 1. Introduction

## 2. Participate in the Design of the Capacity Allocation Framework of Pumped Storage Units in the Multi-Level Market

#### 2.1. Pumped Storage Units Participate in Market Competition

#### 2.2. Double-Layer Model Structure of Pumped Storage Unit Capacity Allocation

#### 2.3. Calculation of Ramping Demand

## 3. Bidding Model for Pumped Storage Units in Multiple Markets

#### 3.1. Upper-Level Transaction Decision-Making Mode

#### 3.1.1. Objective Function

#### 3.1.2. Constraints

- (1)
- Output constraints

- (2)
- Reservoir capacity constraints

- (3)
- Working condition state transition constraint

- (4)
- Constraints on the maximum number of starts and stops of the unit

#### 3.2. Lower Market Joint Clearing Model

#### Objective Function

## 4. Example Analysis

#### 4.1. Parameter Settings

#### 4.2. Analysis of Pumped Storage Capacity Allocation Results

- (1)
- Market clearing price results

- (2)
- The output of each unit in the energy market

- (3)
- Bid winning status of pumped storage power stations in multiple markets at various times

#### 4.3. Analysis of Income from Pumped Hydro Energy Storage

## 5. Conclusions

- (1)
- In the two-part electricity price system proposed in Document No. 633, pumped storage power stations mainly rely on capacity electricity charges to make profits. Part of the income from electricity is reflected through the peak and valley electricity prices in the spot market. After pumped storage entered the market, it competed as an independent operating entity. The daily income increased by 5% compared with the two-part electricity price. It no longer needs to rely on capacity electricity charges to achieve profitability.
- (2)
- The markets that pumped storage units tend to participate in at different points in time are different, driven by price signals, pumped hydro energy storage participates in different markets by arranging pumping plans to obtain higher returns, which places higher requirements on the bidding and trading strategies of pumped hydro storage units in different markets.
- (3)
- The profit share of pumped storage units from participating in the auxiliary service market such as ramping is much higher than the profit from participating in the electric energy market, This can increase the enthusiasm of pumped storage units to participate in the ancillary service market such as ramping, and quantify the value of the flexible adjustment capabilities of pumped storage units. In the context of large-scale new energy grid integration, pumped hydro storage units actively provide auxiliary services, which is conducive to maintaining the safe and stable operation of the power system.

## Author Contributions

## Funding

## Data Availability Statement

## Acknowledgments

## Conflicts of Interest

## Appendix A

a/¥ | $\mathbf{b}/\mathbf{y}\mathbf{u}\mathbf{a}\mathbf{n}\cdot \mathbf{M}{\mathbf{W}}^{-1}$ | $\mathbf{c}/\mathbf{y}\mathbf{u}\mathbf{a}\mathbf{n}\cdot \mathbf{M}{\mathbf{W}}^{-2}$ | Maximum Output/MW | Minimum Output/MW | The Frequency Modulation Mileage Multiplier | The Reserve Calling Coefficient | |
---|---|---|---|---|---|---|---|

G1 | 3933.99 | 181.64 | 0.09 | 1500 | 450 | 7 | 0.2 |

G2 | 3628.17 | 183.53 | 0.11 | 1300 | 350 | 8 | 0.2 |

G3 | 5249.99 | 201.98 | 0.19 | 1100 | 250 | 7 | 0.2 |

H | 201 | 0 | 0 | 1500 | 0 | 10 | 0.2 |

Frequency Modulation Capacity Price/(yuan/MW) | Frequency Regulation Mileage Quotes/(yuan/MW) | Reserve Offer/(yuan/MW) | |
---|---|---|---|

G1 | 60 | 12 | 48 |

G2 | 65 | 14 | 46 |

G3 | 70 | 15 | 44 |

H | 95 | 10 | 40 |

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**Table 1.**Comparison of gains from pumping participation in the market with gains from the two-part system.

Participation in the Market | Incomes/Ten Thousand Yuan | Two-Part Tariff | Incomes/Ten Thousand Yuan |
---|---|---|---|

electricity purchase | −223.54 | Electricity quantity and cost | 10.6 |

generate electricity | 201.69 | volumetric electricity tariff | 240.05 |

FM market | 214.3 | ||

rotating spare | 45.14 | ||

ramp market | 27.58 | ||

total daily profit | 265.17 | total daily profit | 250.65 |

total profit for the year | 96,787.05 | total profit for the year | 91,487.25 |

profit growth for the year | 5.79% |

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**MDPI and ACS Style**

Ge, P.; Wang, K.; Lv, J.; Duan, N.; Zhi, Y.; Liu, J.; Deng, J.
Capacity Allocation Method of Pumped-Storage Power Station for Multi-Level Market in New Power System. *Electronics* **2024**, *13*, 415.
https://doi.org/10.3390/electronics13020415

**AMA Style**

Ge P, Wang K, Lv J, Duan N, Zhi Y, Liu J, Deng J.
Capacity Allocation Method of Pumped-Storage Power Station for Multi-Level Market in New Power System. *Electronics*. 2024; 13(2):415.
https://doi.org/10.3390/electronics13020415

**Chicago/Turabian Style**

Ge, Pengjiang, Kangping Wang, Jinli Lv, Naixin Duan, Yuan Zhi, Jichun Liu, and Jianhua Deng.
2024. "Capacity Allocation Method of Pumped-Storage Power Station for Multi-Level Market in New Power System" *Electronics* 13, no. 2: 415.
https://doi.org/10.3390/electronics13020415