Virtual storage plant offering strategy in the day-ahead electricity market

摘要: Abstract Energy storage is gaining an important role in modern power systems with high share of renewable energy sources. Specifically, large-scale battery units (BSUs) are attractive solution due to their modularity, fast response and ongoing cost reduction. This paper aims formulate, analyze clarify the merchant-owned BSUs day-ahead electricity market. It defines virtual plant (VSP) as a set distributed across network. A VSP offering model formulated bilevel program which upper-level problem represents profit maximization operation, while lower-level simulates market clearing price formation. mathematical equilibrium constraints (MPEC) converted into mixed-integer linear (MILP). afterwards expanded game multiple VSPs formulating (EPEC), solved using diagonalization procedure. The proposed applied updated IEEE RTS-96 system. We evaluate impact have on locational marginal prices compare coordinated approach (all operated under single VSP), i.e. MPEC formulation, competitive (multiple competing for profit), EPEC formulation.