Research on Cost Recovery of Pumped-storage Power Stations in the Electricity Market Environment

Recently, the significance of pumped-storage power stations has become increasingly evident. These stations have significantly contributed to the safety and reliability of the power system, encouraging the consumption of renewable energy, and boosting system flexibility. The investment scale of pumped-storage power stations is enormous, and achieving reasonable cost management has been a key concern for various sectors of society. Against this backdrop, this paper first establishes a cost model for pumped-storage power stations. It then constructs a revenue model for pumped-storage power stations within the framework of the electricity energy market and the frequency regulation ancillary services market. The present paper uses the Fengning pumped-storage power station as a case study, conducting an annual sequential production simulation to implement cost recovery of the station under different market conditions. The results show that the participation of pumped-storage power stations in both the electricity energy market and the frequency regulation ancillary services market can result in enhanced revenue generation, thereby facilitating more effective cost recovery.