Study on the Subsidy Mechanism for Pumped Storage Phase Modulation Ancillary Services and Benefits Calculation

With the vigorous development of new energy sources such as wind power and photovoltaic, the problem of power system stability has become more and more prominent. Pumped storage has become the core support for green and flexible regulation of New-Type Power System (NTPS) by virtue of its high technological maturity and low cost of large-scale application. However, the investment, loss and maintenance costs arising from its long-term phase modulation operation have led to unclear economics, and coupled with the lack of a mature incentive mechanism for phase modulation, it is difficult to reflect its value to the system as a whole. This study proposes a phase modulation ancillary service compensation mechanism that quantifies the phase modulation capacity compensation profit under pumped storage phase modulation conditions, providing an operational quantitative basis for market-based compensation. Taking East China as an example, it is found that when the phase modulation capacity compensation factor in East China is 19.1 yuan/MVarh, the pumped storage power station can achieve breakeven.