Optimal Offering Strategy for Concentrating Solar Power Plants in Joint Energy, Reserve and Regulation Markets

Abstract

In addition to energy, a concentrating solar power (CSP) plant with thermal energy storage (TES) could also provide ancillary service (AS) in the reserve and regulation markets. On one hand, providing AS contributes to the flexibility of the power systems and increases the revenue of CSP plants. On the other hand, the flexibility of CSP plants to accommodate solar energy, which is of great uncertainty, might be significantly weakened by an inappropriate offering strategy, e.g., offering excessive AS. Insufficient flexibility might cause massive solar energy curtailment and reduce the potential revenue. This paper develops a general model framework on the optimal offering strategy for CSP plants in joint day-ahead energy, reserve and regulation markets, which is robust for solar energy uncertainty and stochastic for market price uncertainty. On this basis, given the optimal day-ahead offering strategy, the offering curves to provide incremental AS capacities in the supplemental AS markets are further derived considering the opportunity cost. A new index, the maximum acceptable curtailment rate, is introduced to formulate the tradeoff of CSP plants between supplying AS to the system and reserving the flexibility for solar energy accommodation. The case study results demonstrate the validity of the proposed model.