Cost Recovery for Variable-Speed Pumped Storage Power Plants in the Market Environment
As the construction of the new power system progresses, pumped storage plays an important role in the system as a typical regulating resource. However, the regulating capacity of traditional fixed-speed pumped storage units is limited and it is difficult to meet the increasing flexibility demands of...
Saved in:
| Main Authors: | , , , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2025-01-01
|
| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/18/1/153 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1841549201693999104 |
|---|---|
| author | Yonglai Li Yue Fan Xianbo Ke Chao Huo Ming Zhou Yuxuan Yang Jiaxing Wang Yuhang Xin |
| author_facet | Yonglai Li Yue Fan Xianbo Ke Chao Huo Ming Zhou Yuxuan Yang Jiaxing Wang Yuhang Xin |
| author_sort | Yonglai Li |
| collection | DOAJ |
| description | As the construction of the new power system progresses, pumped storage plays an important role in the system as a typical regulating resource. However, the regulating capacity of traditional fixed-speed pumped storage units is limited and it is difficult to meet the increasing flexibility demands of system regulation. This paper studies the operation and cost recovery of pumped storage power stations based on doubly-fed variable-speed technology in the market environment. Using a combination of theoretical analysis and case study, the working principles and technical advantages of doubly-fed variable-speed pumped storage technology are first explained. We then develop a revenue model encompassing both the energy and ancillary service markets and analyze the impact of different pricing mechanisms on cost recovery for variable-speed pumped storage power stations within the current situation of China’s electricity market. The research results indicate that under the combined effects of the electricity spot market and the ancillary service market, the flexibility value of variable-speed pumped storage power stations can be fully reflected, significantly increasing their revenues and enabling cost recovery and profitability. In the future, the pricing mechanisms of the electricity and ancillary service markets should be further improved, the functional positioning of pumped storage power stations should be optimized, and their support capabilities for the new power system should be enhanced. |
| format | Article |
| id | doaj-art-1fb0bba20c3e4feaae24d06b18a5f874 |
| institution | Kabale University |
| issn | 1996-1073 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj-art-1fb0bba20c3e4feaae24d06b18a5f8742025-01-10T13:17:15ZengMDPI AGEnergies1996-10732025-01-0118115310.3390/en18010153Cost Recovery for Variable-Speed Pumped Storage Power Plants in the Market EnvironmentYonglai Li0Yue Fan1Xianbo Ke2Chao Huo3Ming Zhou4Yuxuan Yang5Jiaxing Wang6Yuhang Xin7Northwest Branch of State Grid Corporation of China, Xi’an 710048, ChinaNorthwest Branch of State Grid Corporation of China, Xi’an 710048, ChinaNorthwest Branch of State Grid Corporation of China, Xi’an 710048, ChinaNorthwest Branch of State Grid Corporation of China, Xi’an 710048, ChinaState Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, North China Electric Power University, Beijing 102206, ChinaState Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, North China Electric Power University, Beijing 102206, ChinaState Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, North China Electric Power University, Beijing 102206, ChinaState Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, North China Electric Power University, Beijing 102206, ChinaAs the construction of the new power system progresses, pumped storage plays an important role in the system as a typical regulating resource. However, the regulating capacity of traditional fixed-speed pumped storage units is limited and it is difficult to meet the increasing flexibility demands of system regulation. This paper studies the operation and cost recovery of pumped storage power stations based on doubly-fed variable-speed technology in the market environment. Using a combination of theoretical analysis and case study, the working principles and technical advantages of doubly-fed variable-speed pumped storage technology are first explained. We then develop a revenue model encompassing both the energy and ancillary service markets and analyze the impact of different pricing mechanisms on cost recovery for variable-speed pumped storage power stations within the current situation of China’s electricity market. The research results indicate that under the combined effects of the electricity spot market and the ancillary service market, the flexibility value of variable-speed pumped storage power stations can be fully reflected, significantly increasing their revenues and enabling cost recovery and profitability. In the future, the pricing mechanisms of the electricity and ancillary service markets should be further improved, the functional positioning of pumped storage power stations should be optimized, and their support capabilities for the new power system should be enhanced.https://www.mdpi.com/1996-1073/18/1/153auxiliary servicebidding strategycost recovery mechanismelectricity marketvariable-speed pumped storage |
| spellingShingle | Yonglai Li Yue Fan Xianbo Ke Chao Huo Ming Zhou Yuxuan Yang Jiaxing Wang Yuhang Xin Cost Recovery for Variable-Speed Pumped Storage Power Plants in the Market Environment Energies auxiliary service bidding strategy cost recovery mechanism electricity market variable-speed pumped storage |
| title | Cost Recovery for Variable-Speed Pumped Storage Power Plants in the Market Environment |
| title_full | Cost Recovery for Variable-Speed Pumped Storage Power Plants in the Market Environment |
| title_fullStr | Cost Recovery for Variable-Speed Pumped Storage Power Plants in the Market Environment |
| title_full_unstemmed | Cost Recovery for Variable-Speed Pumped Storage Power Plants in the Market Environment |
| title_short | Cost Recovery for Variable-Speed Pumped Storage Power Plants in the Market Environment |
| title_sort | cost recovery for variable speed pumped storage power plants in the market environment |
| topic | auxiliary service bidding strategy cost recovery mechanism electricity market variable-speed pumped storage |
| url | https://www.mdpi.com/1996-1073/18/1/153 |
| work_keys_str_mv | AT yonglaili costrecoveryforvariablespeedpumpedstoragepowerplantsinthemarketenvironment AT yuefan costrecoveryforvariablespeedpumpedstoragepowerplantsinthemarketenvironment AT xianboke costrecoveryforvariablespeedpumpedstoragepowerplantsinthemarketenvironment AT chaohuo costrecoveryforvariablespeedpumpedstoragepowerplantsinthemarketenvironment AT mingzhou costrecoveryforvariablespeedpumpedstoragepowerplantsinthemarketenvironment AT yuxuanyang costrecoveryforvariablespeedpumpedstoragepowerplantsinthemarketenvironment AT jiaxingwang costrecoveryforvariablespeedpumpedstoragepowerplantsinthemarketenvironment AT yuhangxin costrecoveryforvariablespeedpumpedstoragepowerplantsinthemarketenvironment |