Modeling and Integration of Flexible Loads and Energy Storages in Electricity Spot Market

Abstract

With the incorporation of higher shares of intermittent renewable energies, extreme electricity prices, e.g., spike prices, occur frequently in the electricity spot market. More flexible resources are required to prevent price risks and ensure the stable operation of the market. Compared with the supply-side resources, the flexible loads and energy storages hold untapped potential to actively respond to the market price signals. This paper investigates the modeling and integration methods for these resources in the electricity spot market. Firstly, to describe the response characteristics of flexible loads, three kinds of response models are established including shiftable load model, transferable load model, and curtailable load model. An interactive model of energy storage is constructed which considers the charging and discharging process in markets. Moreover, a method for energy storage and flexible load as the market entities to participate in the spot market is proposed. Finally, the case simulation is used to analyze the effects of flexible load and energy storage on the peak load shifting, which shows the effectiveness of the proposed model.