Bi-level Optimization Strategy Considering the Participation of Pumped Storage Power Plants in Auxiliary Services of Capacity Trading

The pumped storage power station is an important peak and frequency regulation resource. At present, the pumped storage power station is always in passive dispatching during operation, and its benefits are compensated by the two-part electricity price, which leads to the low enthusiasm of pumped storage to participate in the auxiliary service market. The high proportion of new energy has brought strong volatility and intermittence. It is urgent to speed up the establishment of independent market main body status of flexible regulation resources such as pumped storage power stations to promote the stable consumption of new energy. This paper designs the operation mechanism of pumping and storage as an independent subject to participate in the auxiliary service market and the day-ahead market at the same time and establishes a bi-level optimization model of bundled capacity optimization-day-ahead dispatching to realize pumping and storage, wind-solar system cooperation and friendly interaction with the power grid. The upper layer constructs a risk-utility function to quantify the functional relationship between the expected bottom line of the pumped-storage income and the wind-solar bundle capacity, defines the theoretical criterion for the pumped-storage decision to cooperate with the wind-solar, and establishes a bargaining game model to allocate the cooperative income of the two parties reasonably. The bundle capacity is optimized to maximize the expected wind-solar benefit; the lower layer considers the multi-power type structure and aims to minimize the system power generation cost, and simulate the impact of day-ahead market pumping output, operating conditions, and day-ahead revenue on capacity trading. Finally, taking the actual data of a certain province in 2020 as an example, the double-layer optimization model is solved using the particle swarm bi-level algorithm to obtain the optimal bundled capacity and profit distribution scheme. The calculation results show that while effectively reducing the deviation of wind and solar output, the benefits of pumped storage and wind and solar can be significantly improved, giving full play to the regulatory role of flexible adjustment resources.