A Capacity Pricing Methodology for Pumped Storage Considering the Apportion of Electricity Benefits

Abstract

Pumped storage has the characteristics of flexible regulation and high grid friendliness, so it is an important and necessary part of new power system to accept high proportion of renewable energy. With the adoption of the new power price mechanism policy of pumped storage in China, it will become the mainstream that the capacity income fees will ensure the investment recovery of pumping storage and this part will be included in transmission and distribution electricity price of local province, while the electricity benefits fees of electricity quantity will cover the loss of pumping and power generation and party divert the capacity price. Based on the investment-revenue model of pumped-storage power station, this paper puts forward a pricing methodology of pump storage capacity pricing considering the apportion effect of electricity benefits, and verifies it through a practical example. The results show that the electricity benefits and auxiliary service income of pumped storage power station in spot market can evidently alleviate the increase of power transmission and distribution price caused by its capacity price charge.