The bidding transaction model of the hour-ahead regulation service market with energy storage system concerned

Abstract

As the deregulation of electricity market, in addition to grid-connected generators, any other resources capable of providing ancillary service are permitted to participate in the ancillary service market. Energy storage system is of great value due to its quick and accurate response. Regulation service plays an important role in real-time balance. A novel regulation market bidding model is proposed in this paper, with quoted price, regulation performance taken into consideration. Unlike traditional clearing model, up-regulation capacity and down-regulation capacity are differentiated. The regulation performance indices, including accuracy, response time and ramp rate are used to modify the quoted price. Then the clearing model is formulated to minimize the regulation service cost with different regulation requirements satisfied. As for the payments, in reference to two-part payment, on one hand, all the selected regulation resources are paid for the reserve capacity, on the other hand, they can also be paid according to their actual effective power regulation. The numerical example demonstrates that clearing results vary as different regulation performance demands occur. When high quality regulation is needed, high quality resources like energy storage system are of great advantage. It turns out an effective incentive method for resources of good regulation performance like energy storage system to participate in regulation market competition.