Abstract
Due to the development of China’s electricity spot market, the peak-shifting operation modes of energy storage devices (ESD) are not able to adapt to real-time fluctuating electricity prices. The settlement mode of the spot market aggravates the negative impact of deviation assessments on the cost of electricity retailers. This article introduces the settlement rules of China’s power spot market. According to the electricity cost settlement process and the assessment methods, this paper proposes a comprehensive electricity cost optimization algorithm that optimizes day-ahead market (DA) electricity cost, real-time market (RT) electricity cost and deviation assessment through ESD control. According to the trial electricity price data of the power trading center in Guangdong province (China), many typical load curves and different deviation assessment policies, the algorithm calculates DA electricity cost, RT electricity cost and deviation assessment cost by utilizing a comprehensive electricity cost optimization algorithm. Compared with the original electricity cost and optimization cost, this method is proven to effectively save overall electricity costs under the spot market settlement system. Based on three different initial investment prices of ESD, this paper analyzes the economics of the ESD system and proves that ESD investment can be recovered within 5 years. Considering the small amounts of operating data in China’s power spot market, the algorithm generates random data according to characteristics of these data. Then, this paper verifies that the comprehensive electricity cost optimization algorithm remains reliable under random circumstances.
Highlights
National Engineering Laboratory for Electric Vehicles, Beijing Institute of Technology, Beijing 100081, China; Beijing Huashang Sanyou New Energy Technology Co., Ltd., Beijing 271000, China
According to PDA_plan, deviation assessment constraints, energy storage devices (ESD) constraints, actual load demand and real-time market (RT) electricity prices at the step, optimization of the RT load curve PRT_plan, real-time operation power control of ESD and comprehensive electricity cost optimizations are obtained by carrying out comprehensive optimizations of RT electricity costs and deviation assessments
The deviation from PDA_plan (t) obtained in Section 4.2.1 and the actual load demand PRT inevitably result in RT electricity costs and deviation assessment costs, as shown in Equations (3) and (4)
Summary
The United States, Britain and other European countries formulated power market policies according to their own conditions; the countries constantly adjust and optimize their electricity market systems during the process of market operation over the duration of many years. The PJM power market in the United States adopts a centralized power market, including power market, capacity market, auxiliary service market, etc. The power market covers medium and long-term bilateral transactions, including DA market and RT market. Both the power generation side and the power consumption side participate in the declaration of electricity quantity and electricity price. The settlement cost of PJM includes the following: blocking surplus expenses and compensation expenses. In the DA market and RT market, the deviation caused by users is assessed, which compensates operating power generation [27]. The trading mechanism includes medium and long-term transactions and unbalanced settlements are used afterwards, which compensate start-up, stop and no-load cost of generation units. In the Australian electricity market, the spot market is the core transaction, which centers around unilateral bidding and 24 h rolling clearing from the power generation side, without distinguishing DA markets and RT markets [28]
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