The co-optimal bidding strategy of pumped-storage unit in ERCOT energy market

Abstract

Pumped Storage Hydro can play a unique role in the operation of modern power system. Usually they generate power in the peak load and store energy in the light load. Therefore, the unit not only improves energy efficiency but also contribute to system security and reliability. In this paper, starting from MCPE and MCPC weekly curve, a co-optimal bidding strategy for a pumped-storage generating unit in a competitive electricity market has been developed. A numerical simulation is carried out to validate the proposed bidding strategy. The simulation results show that a pumped-storage unit has the ability to make profits in a competitive energy market due to its outstanding fast response time, ramp rate, and startup and shutdown time.