Optimization Bidding Strategy on Day Ahead and Balancing Market of PV Generator Considering Battery Integration

Bo Jie, Jindan Cui, Xue Fang, Takashi Oozeki, Yuzuru Ueda

Research output: Contribution to journalArticlepeer-review

Abstract

To realize Carbon Neutrality, renewable energy would be the main source of electricity, such as photovoltaic (PV) power generation in the Japanese power system. However, a decrease in the number of operating thermal generators, the main source of balancing power in the Japanese balancing market, is causing concerns regarding a shortage of balancing power in the future. PV can therefore provide balancing power in addition to energy; thus, the PV power economic value in electricity markets will become diversified. A solution examination and rationality analysis of technical issues for PV-based balancing power creation are needed. Here, by applying the proposed headroom control method based on the PV output curtailment beforehand, PV generator optimizes benefit by bidding into the balancing market when the spot market price is very low. Optimizing the bidding strategy on the spot market and balancing market is conducted, and battery integration is also considered. The optimization simulation results validate the possibility of creating balancing power by a PV power producer, and the total revenue valuation verifies a more beneficial effect.

Original languageEnglish
Pages (from-to)1983-1993
Number of pages11
JournalIEEJ Transactions on Electrical and Electronic Engineering
Volume18
Issue number12
DOIs
Publication statusPublished - Dec 2023

Keywords

  • balancing power
  • battery system
  • headroom control
  • optimization bidding strategy
  • PV

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