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

Xiangsheng Xiao, JianXiao Wang and David J. Hill

Applied Energy, 2022, vol. 318, issue C, No S0306261922005815

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.

Keywords: Multi-market; Bi-level model; Concentrated solar power; Conditional value at risk; Strategic bidding (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:318:y:2022:i:c:s0306261922005815

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DOI: 10.1016/j.apenergy.2022.119216

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