Research on the Operation Strategy of Compressed Energy Storage in the Power Market Environment

In the context of global energy structure transition and environmental protection, compressed air energy storage (CAES) technology has become the key to the enhancement of power system regulation due to its large-scale energy storage capacity, efficient energy conversion efficiency and environmental friendliness. The study uses a mixed integer linear programming model to investigate the economics of compressed air energy storage (CAES) power plants through price arbitrage and FM service market participation strategies in the peak-to-valley tariff system. It is found that CAES power plants charge during low tariff hours and discharge during high tariff hours to maximize profits and provide services in the FM market to increase revenues. The power plant's operating strategy is constrained by factors such as power caps, capacity limits, and self-discharge rates, which need to be allocated appropriately among different markets to optimize overall revenue. The results show that CAES power stations can effectively enhance their economic returns by participating in both price arbitrage and FM service markets under the peak-to-valley tariff system.