Research on participation strategies of pumped storage power stations in the spot market and frequency regulation market

Abstract

Against the context of global energy transition and the progression of “dual carbon” goals, renewable energy sources like wind and photovoltaic power have achieved a significantly higher penetration rate. This has triggered an urgent need for flexible regulation resources in power systems, with the electricity market reform offering room for the market-driven operation of pumped storage power stations (PSPS). Focusing on the constraints and optimization issues concerning PSPS participation in the spot market and frequency regulation market, a multi-stage decision-making model is constructed in this paper: in the spot market, the core goal is the minimization of total system operation cost, with unit output, reservoir capacity, and other constraints considered; in the frequency regulation market, the aim is to minimize service cost, which is tightly linked to the output performance of the spot market. This research reveals the high sensitivity of PSPS to market price signals and the synergistic value of their dual-market participation, providing a decision-making basis for their market-oriented operation and resource optimization of dispatching agencies, and further facilitating new energy accommodation and power system stability.