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Two-Part Tariff of Pumped Storage Power Plants for Wind Power Accommodation

Author

Listed:
  • Hua Li

    (College of Information Science and Engineering, Northeastern University, Shenyang 110819, China
    Key Laboratory of Integrated Energy Optimization and Secure Operation of Liaoning Province, Northeastern University, Shenyang 110819, China)

  • Hongwei Zheng

    (College of Information Science and Engineering, Northeastern University, Shenyang 110819, China
    Key Laboratory of Integrated Energy Optimization and Secure Operation of Liaoning Province, Northeastern University, Shenyang 110819, China)

  • Bowen Zhou

    (College of Information Science and Engineering, Northeastern University, Shenyang 110819, China
    Key Laboratory of Integrated Energy Optimization and Secure Operation of Liaoning Province, Northeastern University, Shenyang 110819, China)

  • Guangdi Li

    (College of Information Science and Engineering, Northeastern University, Shenyang 110819, China
    Key Laboratory of Integrated Energy Optimization and Secure Operation of Liaoning Province, Northeastern University, Shenyang 110819, China)

  • Bo Yang

    (College of Information Science and Engineering, Northeastern University, Shenyang 110819, China
    Key Laboratory of Integrated Energy Optimization and Secure Operation of Liaoning Province, Northeastern University, Shenyang 110819, China)

  • Bo Hu

    (State Grid Liaoning Electric Power Co., Ltd., Shenyang 110006, China)

  • Min Ma

    (State Grid Liaoning Electric Power Co., Ltd., Shenyang 110006, China)

Abstract

Pumped storage power plants face many challenges in competing in the electricity market, and high pumping costs lead to high prices for their power generation, which is one of the important factors that has limited their development. To address this problem, this paper studies the pumped storage two-part tariff mechanism considering wind power accommodation and uses the peak-valley price difference of wind power to realize the rationality and economy of a pumped storage charging and discharging strategy. It can improve the competitiveness of pumped storage power plants participating in electricity market transactions. Then, by considering the economic advantages of “pumped storage + clean energy”, a pumped storage and wind power joint optimal dispatching model was established based on the original pumped storage pricing method. This model takes the total system cost reduction after the introduction of pumped storage as the objective function to derive a reasonable pumped storage strategy. After which, the two-part tariff for pumped storage power plants was formulated based on the principle of reasonable revenue. Finally, a sensitivity analysis of various relevant parameters of the power plant was conducted through case studies to verify the effectiveness of the two-part tariff mechanism of pumped storage. It was found that the electricity tariff is lowest when the ratio of plant capacity to upper reservoir capacity is 1:6.37 (MW/million m 3 ).

Suggested Citation

  • Hua Li & Hongwei Zheng & Bowen Zhou & Guangdi Li & Bo Yang & Bo Hu & Min Ma, 2022. "Two-Part Tariff of Pumped Storage Power Plants for Wind Power Accommodation," Sustainability, MDPI, vol. 14(9), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5603-:d:809879
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    References listed on IDEAS

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    1. Wu, Wei & Lin, Boqiang, 2018. "Application value of energy storage in power grid: A special case of China electricity market," Energy, Elsevier, vol. 165(PB), pages 1191-1199.
    2. Steffen, Bjarne, 2012. "Prospects for pumped-hydro storage in Germany," Energy Policy, Elsevier, vol. 45(C), pages 420-429.
    3. Jun Dong & Dongran Liu & Xihao Dou & Bo Li & Shiyao Lv & Yuzheng Jiang & Tongtao Ma, 2021. "Key Issues and Technical Applications in the Study of Power Markets as the System Adapts to the New Power System in China," Sustainability, MDPI, vol. 13(23), pages 1-29, December.
    4. Ngan, H.W., 2010. "Electricity regulation and electricity market reforms in China," Energy Policy, Elsevier, vol. 38(5), pages 2142-2148, May.
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    Cited by:

    1. Li, Hongze & Li, Xumeng & Zhang, Yuanyuan & Zhao, Yihang & Pan, Jiaqi & Zhao, Huiru, 2024. "Declaration strategy of wind power and pumped storage participating in the power market considering multiple uncertainties," Energy, Elsevier, vol. 293(C).
    2. Ghorbani, Narges & Sihvonen, Ville & Gulagi, Ashish & Makian, Hamed & Breyer, Christian & Honkapuro, Samuli, 2025. "Developing a replicable methodology for assessing pumped hydro energy storage potential: Mapping, estimation, and economic analysis," Energy, Elsevier, vol. 334(C).

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