Modeling and Optimizing Pumped Storage in a Multi-stage Large Scale Electricity Market under Portfolio Evolution

Technical Report · Mon Nov 29 04:00:00 EST 2021

DOI:https://doi.org/10.2172/1833111· OSTI ID:1833111

Bo, Rui ^[1]; Chen, Yonghong ^[2]; Wu, Lei ^[2]; Baldick, Ross ^[2]; Huang, Bing ^[2]; Ghesmati, Arezou ^[2]; Wang, Siyuan ^[2]; Liu, Jian ^[2]; Chen, Haotian ^[2]; Lin, Yang ^[2]; Liu, Yikui ^[2]; Yang, Yafei ^[2]

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1. Missouri Univ. of Science and Technology, Rolla, MO (United States); Missouri University of Science and Technology
2. Missouri Univ. of Science and Technology, Rolla, MO (United States)

To leverage the fast-ramping capability of resources to provide great value to the grid, electricity system operators such as the Midcontinent Independent System Operator (MISO) continue to evolve their approaches for integrating energy storage resources, including pumpedstorage hydro (PSH), into the electricity markets. However, new challenges arise in modeling and optimizing these energy-limited resources across multiple market clearing processes and planning studies with uncertainties and imperfect information. For instance, current market practices of PSH owners specifying pumping/generating hours can result in sub-optimal generation dispatch. Letting grid operators optimize PSH with the consideration of multiple operating modes and energy limitation constraints can potentially bring economic benefits to both the system and the PSH owners. However, in multi-stage clearing process of electricity markets, utilizing the PSH flexibility to deal with realized uncertainties can cause deviation in the multi-stage scheduling processes. The resulting financial risks from the schedule deviation may not be acceptable to PSH owners. In addition, to effectively utilize this energy limited resource, the state of charge (SOC) constraints of PSH needs to be continuously optimized and the marginal cost of deviation need to reflect the expected cost to purchase or sell energy at future times to compensate for deviations. This project aims to develop a prototype enhanced PSH model and improved price signals in the multi-stage market clearing process with proper consideration of the unique characteristics of PSH, in order to better align underlying PSH capabilities with evolving grid needs, particularly including the needs for more frequent and larger cycling to manage variability and uncertainty from renewables.

• Research Organization: Missouri Univ. of Science and Technology, Rolla, MO (United States)
• Sponsoring Organization: USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Water Power Technologies Office
• DOE Contract Number: EE0008781
• OSTI ID: 1833111
• Report Number(s): DOE-MST-EE0008781_FTR
• Country of Publication: United States
• Language: English

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