Coordinated operation for pumped hydro storage considering grid-side dispatch and market bidding

Pumped Hydro Storage (PHS) play important roles in enhancing the consumption of renewable energy resources. Existing PHS mainly benefit from the grid-side dispatching and result in low profits. Joining Markets become a necessary approach to promote the application of PHS. This paper proposes a coordinated operation strategy for PHS to optimize the joint profits from both grid-side dispatching and market bidding. The proposed strategy consists of two stages. At the first stage, the bidding decisions towards the energy markets and the capacities utilized in the grid-side dispatching are formulated to maximize the overall profits of the PHS. The second-stage operation model contains two models: the market clearing model and the grid-side dispatching model. The operation of PHS is firstly optimized according to the market clearing model. Then, the power adjustment decisions for the PHS are made based on the grid-side dispatching model. The first-stage operation model is formulated as a nested mixed-integer programming (MILP) problem and solved by an improved genetic algorithm. The second-stage operation models are solved as MILP problems. Case studies based on PHS in 13-node power system are carried out to validate the effects of the proposed strategy. Simulation results show that the proposed approach significantly enhances renewable energy utilisation and system economic performance.