Reserve provision of combined-cycle unit in joint day-ahead energy and reserve markets

Rufeng Zhang, Haihang Sun, Guoqing Li, Tao Jiang, Xue Li, Houhe Chen and He Zou

Applied Energy, 2023, vol. 336, issue C, No S0306261923001769

Abstract: With the continuous development of natural gas-fired combined cycle power generation technology, the combined cycle (CC) unit's installed capacity is gradually increasing in the power system because of its flexible operation characteristics. Participating in the energy and reserve markets and taking advantage of flexible mode transfer characteristics, the CC unit can provide the system with energy and sufficient reserve capacity. This paper proposes a bi-level strategic bidding model to study the CC unit’s bidding behavior in the day-ahead energy and reserve markets. The upper-level model is an optimal bidding model for the configuration-based CC unit aiming to maximize its profit. The lower-level model is the joint market clearing model of the energy and reserve markets managed by the independent system operator (ISO). CC unit and ISO in this model influence each other by the locational marginal electricity prices (LMEP) and the locational marginal reserve prices (LMRP) obtained from the lower-level market-clearing model. The CC unit submits the bids to the ISO and arranges the generation plan according to the market clearing results of the lower-level market-clearing model carried out by the ISO. The proposed bi-level optimization model is transformed into a mathematical equilibrium constraint (MPEC) problem by Karush-Kuhn-Tucker (KKT) conditions and duality theory. In this paper, the improved IEEE-6 bus and IEEE-57 bus systems are used as case studies to verify the effectiveness of the proposed bidding strategy for the CC unit. The results show that the proposed bidding strategy can effectively improve the profits of the CC unit in the electricity market. Compared with the case of the CC unit only participating in the energy market, the profits of the CC unit in the market increased by 8.84% and 12.3%.

Keywords: Combined-cycle unit; Energy and reserve markets; Market clearing; Bi-level optimization model (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.apenergy.2023.120812

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