Optimization Model of Electricity Spot Market Considering Pumped Storage in China

As China’s electricity market continues to evolve, pumped hydro storage will participate in electricity spot market transactions. According to the latest price policy of pumped storage, pumped storage units will not participate in the spot market bidding for a long time and will be settled at the spot price. Aiming at maximizing the welfare of the whole society, this paper proposes a full dispatch model for pumped storage units to participate in China’s electricity spot market under the new power system. By transforming the day-ahead spot market clearing results into the boundary conditions of the real-time spot market, the model proposed in this paper realizes the fine adjustment of pumped storage units’ operation curve in the real-time market and further improves social welfare.