Analysis on the operation mode of pumped storage power station and the benefits of participating in electricity market transactions

Pumped-storage power stations play an important role in the electricity market because of their flexible operation and rapid response, as well as their multiple functions such as peak shaving and valley filling, frequency and phase modulation, and emergency standby. Based on the summary of the typical operation modes of pumped-storage power stations in the world, this paper constructs the cost-benefit model of pumped-storage power stations participating in electric energy trading and auxiliary services, and uses the data of a pumped-storage power station in the Southern Power Grid for example calculation. The results show that the difference in electricity prices between peak and valley hours leads to a significant increase in income, and the income from pumped storage participating in electric energy trading in the electricity market is not as stable as the unified dispatching mode of the power grid; the income from pumped-storage power stations participating in power frequency regulation auxiliary services is lower than the compensation level under the two-part mode.