Operation Mode and Capacity Tariff Mechanism of a Pumped Storage Power Plant Considering Hydropower in the Same River Basin

Pumped storage power plants have the functions of peak and valley regulation, frequency regulation, phase regulation, accidental backup, and black start, which are potent supports to promote the steady development of new energy sources and ensure the safe and stable operation of power grids in the context of building a new type of power system. This paper builds a model to calculate the peak and valley regulation characteristics of pumped storage power plants, clarifies their essential roles, and then analyzes the main characteristics of the capacity price of pumped storage power plants and the influence factors on the electricity price level based on 48 pumped storage power plants in operation in China and to be put into operation by the end of 2025. The study results show that formulating pumped storage power plant tariff rules based on essential functions cannot fully reflect their significant value. It is necessary to rationally utilize the capacity tariff mechanism, strictly implement the two-part tariff policy, and comprehensively consider the overall profitability.