Optimization of Energy Storage Day Ahead Quotation Strategy Considering Negative Electricity Price

Energy storage technology can effectively convert, store, and utilize energy, thereby enhancing the flexibility and reducing the operating costs of power systems. In the electricity market, the participation of a large number of low-cost renewable energy sources has lowered market prices, leading to the occurrence of low or even negative electricity prices. This presents an opportunity for energy storage operators to charge at low costs. Based on this, this paper proposes an energy storage bidding optimization strategy that considers negative electricity prices. Firstly, the reasons for the occurrence of negative electricity prices in the energy market are analyzed. Subsequently, a bilevel programming model is established for energy storage operators participating in day-ahead market transactions, taking into account negative electricity prices. The model is solved using duality theory and KKT optimality conditions. Finally, the results of case study analysis demonstrate that utilizing negative electricity prices for energy storage charging can encourage the integration and utilization of renewable energy sources. Moreover, the energy storage bidding strategy considering negative electricity prices allows energy storage operators to flexibly adjust the timing of charging and discharging, enabling them to better seize market opportunities and improve profitability.