Energy Storage Participation in Peak Shaving Market Operation Strategy Based on System Supply and Demand Margin

Existing energy storage operation strategies take renewable energy unit consumption as the main goal, and often operate in conjunction with renewable energy projects, resulting in low energy storage utilization rate and insufficient driving force for energy storage operators to develop independent energy storage. However, with the implementation of independent energy storage operation support policies, the regional peak shaving service market gradually expands to include energy storage. Energy storage can have a positive impact on the economy of the power system as well as its utilization rate. According to the historical East Inner Mongolia Power Grid operational data, this paper established the annual chronological operation simulation model of peak shaving market participation by energy storage. By analyzing and summarizing the results of energy storage operation state obtained from the annual operation simulation, the energy storage operation strategy of taking part in peak shaving market based on system supply and demand margin was proposed. The two charge and two discharge or three charge and two discharge strategy, which are the most common operation modes of operation simulation, are compared with the proposed operation strategy. It is evident that energy storage's involvement in system peak shaving can lessen thermal units' peak shaving pressure, enhance the benefits of energy storage as a market participant for auxiliary services and the system's overall efficiency in terms of electricity consumption.