Joint Bidding Strategy of Large-Scale Battery Storage Company in Energy, Reserve and Regulation Markets

Abstract

In order to more profitable allocate the operations of large-scale battery storage stations (BSSs) with locational diversity across various electricity markets, a bilevel formulation is proposed to coordinate the bidding decisions of BSSs in energy, reserve and regulation markets. In which, total profit of BSSs can achieve a global optimum with the consideration of power flow constraints under locational marginal pricing (LMP) clearing schemes. Meanwhile, the battery degradation cost is molded and the stochastic extension with uncertainties are considered. Moreover, the bilevel problem can be converted to mixed-integer linear programming (MILP). Case studies validated the performance of proposed method.