Profit Assessment of Pumped Storages in Electricity Spot Market: Model and Method

With the large-scale integration of renewable energy into power systems, pumped storage power stations play a crucial role in facilitating the absorption of renewable energy. However, with the rapid advancement of power market reforms, improving the profitability of pumped storage power stations has become a pressing issue. Currently, numerous studies have explored the operational strategies of pumped storage, but most of these focus on self-scheduling while treating pumped storage as a price taker, with limited attention to its interactions with the electricity market. To address this gap, this paper proposes an operational model that accounts for the bidirectional interaction between pumped storage and the electricity market, positioning pumped storage as a price maker in the market. Additionally, a calculation method for nodal electricity prices, based on convex optimization theory, is introduced to analyze market clearing results and tariff variations following the participation of pumped storage in the market.