Arbitrage Assessment of Pumped Hydro Storage in Power Spot Market
- Resource Type
- Conference
- Authors
- Huan, Jiafei; Zhao, Bei; Shi, Peiran; Jiang, Shangguang; Wang, Wei; Qiao, Mingyang
- Source
- 2023 5th International Conference on Electrical Engineering and Control Technologies (CEECT) Electrical Engineering and Control Technologies (CEECT), 2023 5th International Conference on. :535-541 Dec, 2023
- Subject
- Computing and Processing
Power, Energy and Industry Applications
Robotics and Control Systems
Signal Processing and Analysis
Renewable energy sources
Optimization methods
Production
Optimal scheduling
Power markets
Power systems
Power generation
Pumped hydro storage
power spot market
market simulation
generation revenue
arbitrage
- Language
Pumped hydro storage is one of the main flexible resources of the power system. The price formation mechanism and arbitrage model of pumped storage power plant is one of the key challenges for its participation in the power spot market. In the paper, a method for arbitrage assessment of pumped hydro storage in power spot market is proposed. A time-series production simulation model of power spot market with pumped storage is proposed for quantifying its annual arbitrage revenues. The technical characteristics of pumped hydro storage is model in the optimization model for optimal scheduling. Arbitrage revenue of pumped hydro storage is quantified in terms of market price, pumped energy and generation. Case study shows that pumped hydro storage has higher economics and shorter payback cycles in power markets.