Trading Decision for Electricity Quantity-Frequency Regulation Auxiliary Market Adapted to New Energy Storage Participation

With the continuous advancement of electricity market reforms, novel energy storage, with its rapid response, flexible configuration, and short construction cycle advantages, serves as an independent market entity providing frequency regulation services, and stands as an effective measure to address the system’s insufficient frequency regulation capabilities. This paper establishes a two-tiered trading decision model to simulate the trading behaviors of novel energy storage in the market and the market clearing process. Firstly, a comprehensive trading model and framework for energy storage participation in the spot electricity volume-frequency regulation market are proposed. Secondly, with the novel energy storage station as an independent bidding entity, a two-tiered market trading decision model is established. The upper tier aims at maximizing the profits of the novel energy storage station, determining its bidding strategy; while the lower tier realizes the joint clearing of the electricity volume market and frequency regulation ancillary service market. Then, the Karush-Kuhn-Tucker (KKT) conditions are applied to transform the two-tiered model into a single-layer solution. Finally, case study analyses are conducted to validate the rationality and effectiveness of the proposed trading decision model. Results from the case studies indicate that novel energy storage can achieve higher economic benefits in the market through strategic bidding.