Impact of Large-scale concentrated solar power on energy and auxiliary markets

Abstract

Concentrated solar power (CSP) generation has been widely regarded as a promising technology to increase the penetration of renewable energy-based generation units in power systems. Numerous research studies have been conducted in various ways to promote the participation of a CSP generator as a price-taker in electricity markets. However, it remains an open question as to how the strategic behavior of a CSP generator as a price-maker affects electricity markets. To this end, we conducted a numerical analysis to quantify the impact of a strategic large-scale CSP generator on energy and auxiliary markets. A three-stage stochastic bi-level model is proposed to describe the strategic behavior of a CSP generator as a price-maker in electricity markets. The impact of the risk-averse level of a CSP generator is also incorporated. Moreover, network constraints are considered to make our conclusion more realistic. The proposed bi-level model is recast into a mathematical programming with equilibrium constraints form firstly by using Karush-Kuhn-Tucker conditions and then a mixed-integer-liner-programming form by using the strong duality theory, and big-M method. Case studies based on an IEEE-56 bus system demonstrate that a price-maker CSP generator can decrease the price of both energy markets and reserve markets. However, an associated thermal energy storage tank can alleviate the negative impact of a CSP generator on electricity markets. Additionally, the high risk-averse level of a CSP generator will lead to an increased equilibrium price.