Open AccessAdvanced bidding strategy for participation of energy storage systems in joint energy and flexible ramping product market
Author(s) -
Khoshjahan Mohammad,
MoeiniAghtaie Moein,
FotuhiFiruzabad Mahmud,
Dehghanian Payman,
Mazaheri Hesam
Publication year - 2020
Publication title -
iet generation, transmission and distribution
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.92
H-Index - 110
eISSN - 1751-8695
pISSN - 1751-8687
DOI - 10.1049/iet-gtd.2020.0224
Subject(s) - bidding , profitability index , electricity market , flexibility (engineering) , procurement , computer science , grid , electricity , energy market , leverage (statistics) , energy storage , reliability engineering , operations research , business , economics , power (physics) , finance , engineering , electrical engineering , marketing , geometry , mathematics , management , machine learning , physics , quantum mechanics
Recently, power system operators have initiated procurement of a new service in electricity markets named flexible ramping product (FRP). With the main goal of enhancing the grid flexibility, this product can provide a remarkable opportunity for an enhanced short‐term profitability. Energy storage systems (ESSs) with high ramping capability can leverage their profitability when properly participating in this market. This study introduces a stochastic optimisation framework for participation of ESSs in the FRP market. The proposed model formulates the optimal bidding strategy of ESSs considering the real‐time energy, flexible ramp‐up and ramp‐down marginal price signals and the associated uncertainties. In addition, as the market participants cannot directly submit bids for the FRP, the corresponding energy bidding adjustments required to award the proper FRP amounts are elaborated. The mathematical model is linearised and its application in real‐time market is investigated. The proposed framework is numerically analysed through which its effectiveness on enhancing the ESS profitability in the real‐time electricity markets is verified.