IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03868245.html
   My bibliography  Save this paper

Bidding strategy of storage hydropower plants in reserve markets

Author

Listed:
  • Laureen Deman

    (SuperGrid Institute SAS, GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Quentin Boucher

    (SuperGrid Institute SAS)

  • Sonia Djebali

    (PULV - Pôle Universitaire Léonard de Vinci)

  • Guillaume Guerard

    (PULV - Pôle Universitaire Léonard de Vinci)

  • Cédric Clastres

    (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

Abstract

The increasing share of intermittent sources of energy will increase the need for frequency-control reserves. However, the supply from gas- and coal-fired power plants might decrease in the following years. Hydropower technologies are often put forward as mature and low-carbon technologies able to contribute to cover this increasing need for reserves. The procurement of reserves being mostly market-based in Europe, the market design should send price signals to encourage the participation in these markets. This paper analyses the incentives provided by the French market design for seasonal storage and pumped storage hydropower plants to participate in reserve markets. To that end, a deterministic mixed-integer linear optimization model is presented. The objective is to maximize revenues in the energy and reserve markets according to 2019 market prices. The model considers the day-ahead energy market and all the reserve products existing in France, distinguishing between reserve capacity and reserve energy products. By optimising the trade-offs between the day-ahead and the reserve markets, the storage hydropower plant increase its revenues. The pumped storage hydropower plant sometimes chooses the Frequency Containment Reserve market or the day-ahead market only. The apparition of some hours of FCR participation with the pumped storage plant is explained by its higher number of generating hours and by the higher volatility of reserve energy prices. These two factors also explain the higher efficiency of incentive measures with the pumped storage plant.

Suggested Citation

  • Laureen Deman & Quentin Boucher & Sonia Djebali & Guillaume Guerard & Cédric Clastres, 2021. "Bidding strategy of storage hydropower plants in reserve markets," Post-Print hal-03868245, HAL.
  • Handle: RePEc:hal:journl:hal-03868245
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03868245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.