A Deep Peak Regulation Auxiliary Service Bidding Strategy for CHP Units Based on a Risk-Averse Model and District Heating Network Energy Storage

Liang Tian, Yunlei Xie, Bo Hu, Xinping Liu, Tuoyu Deng, Huanhuan Luo and Fengqiang Li
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Liang Tian: Department of Automation, North China Electric Power University, Baoding 071003, China
Yunlei Xie: Department of Automation, North China Electric Power University, Baoding 071003, China
Bo Hu: State Grid Liaoning Electric Power Company Limited, Shenyang 110006, China
Xinping Liu: Department of Automation, North China Electric Power University, Baoding 071003, China
Tuoyu Deng: Department of Automation, North China Electric Power University, Baoding 071003, China
Huanhuan Luo: State Grid Liaoning Electric Power Company Limited, Shenyang 110006, China
Fengqiang Li: State Grid Liaoning Electric Power Company Limited, Shenyang 110006, China

Energies, 2019, vol. 12, issue 17, 1-27

Abstract: With the advance of China’s power system reform, combined heat and power (CHP) units can participate in multi-energy market. In order to maximize CHP profit in a multi-energy market, a bidding strategy for deep peak regulation auxiliary service of a CHP based on a two-stage stochastic programming risk-averse model and district heating network (DHN) energy storage was proposed. The quotation set of competitors and load uncertainty was modeled with a Latin hypercube sampling (LHS) method. A dynamic queuing method was used to clear the market for the deep peak regulation auxiliary service to determine the bidding capacities of CHPs in the electricity market and the deep peak regulation auxiliary service market, respectively. Finally, the conditional value-at-risk (CVaR) indicator is used to measure the risk brought by the system uncertainty to the CHP, and the quotation coefficient is determined after considering the expected profit and risk profit comprehensively. The results of the example show that the profits produced by simultaneous participation in both electricity market and the deep peak regulation auxiliary service market are increased by approximately 9.5% compared with the profits produced by only participation in a single market. In addition, the use of DHN energy storage led to a profit increase of approximately 4.6%. As the risk aversion coefficient increases, the expected profit will be further reduced.

Keywords: deep peak regulation auxiliary service; conditional value-at-risk; two-stage stochastic programming; power and heat decoupling; energy storage (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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