A Trading Model for the Electricity Spot Market That Takes into Account the Preference for Energy Storage Trading

Qikai Ma (), Bo Liu and Jiang Li
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Qikai Ma: College of Electrical Engineering, Shanghai University of Electric Power, Shanghai 200090, China
Bo Liu: College of Electrical Engineering, Shanghai University of Electric Power, Shanghai 200090, China
Jiang Li: College of Electrical Engineering, Shanghai University of Electric Power, Shanghai 200090, China

Energies, 2025, vol. 18, issue 9, 1-18

Abstract: With the continuous expansion of new energy installed capacity, the flexible regulation role of energy storage in the electricity spot market is becoming more and more prominent. However, traditional trading models often ignore the multiple trading preferences of energy storage. In this paper, we propose an electricity spot market trading model that considers the trading preferences of energy storage to incentivize energy storage to participate more actively in the market. First, the trading preferences of energy storage are modeled with a utility function in which the time preference coefficient and price elasticity are introduced. Then, the utility function is embedded into the spot market clearing model to establish a two-tier model of the spot market, which maximizes social welfare in the upper tier and maximizes energy storage benefits in the lower tier. Finally, the model is solved using KKT and large M methods, and its effectiveness is evaluated on the IEEE39 node system and on a real grid in a specific region.

Keywords: energy storage trading preference; electricity spot market; market clearance (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: 2025
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