Quotation Policy for AA-CAES in Real-Time Energy Market: A Path Based on Policy Transfer

The online quotation of advanced adiabatic compressed air energy storage (AA-CAES) in the real-time energy market faces the dual challenges of unknown market conditions and high dimensional optimization. This paper proposes an efficient bidding method based on policy transfer. Firstly, an optimization model containing real-time market rolling clearance mechanism and AA-CAES operation constraints is constructed. Secondly, it is proved that there is a theoretical reciprocal relationship between the optimal policy of “autonomous decision” mode and the optimal declaration curve of “quantity quotation” mode. Finally, the SDW policy is transferred to a compliant and efficient quotation curve by generalized inverse transformation. The example shows that the average return of the proposed method can reach 89.1% of the optimal bidding result during the discharge period, which is 5.7% and 18.3% higher than the traditional model predictive control (MPC) and linear bidding policy, respectively. This method provides a cost-effective solution for AA-CAES to participate in the high-dimensional real-time market.