Research on the Reserve Market Adapted to the New Power System Considering Strategic Quotations of Market Participants

With a high proportion of renewable resources connected to the system, sufficient flexible regulation capacity is a necessary condition to ensure the safe and economic operation of the power system. There is an urgent need to study and design a market mechanism for reserve service to motivate flexible resources to actively participate in regulation and promote renewable energy consumption. For the reserve ancillary service, existing studies have focused on the identification of market capacity demand and the construction of market clearing models. However, fewer studies have discussed the efficiency of the combined energy-reserve market under different market competition structures from the point of view of allowing market participants to make strategic offers. It is difficult to effectively analyze the impact of the establishment of a reserve market and its coupled clearing with the energy market on the pre-existing market in a real situation. Thus, this paper identifies a joint clearing mechanism for the energy-reserve market that takes into account the participation of demand-side resources such as interruptible loads. A bi-level model with strategic decision-making by market entities at the upper level and clearing transactions by different market mechanisms at the lower level is also established. Subsequent solving by the Particle Swarm Optimization algorithm can obtain accurate market equilibrium results. This paper is based on the IEEE-30 node system for case analysis. To cope with the entities' games, two scenarios of oligopolistic and perfect competition are considered for simulation, and the bidding behavior of the entities and the total system procurement cost are analyzed under both the current domestic mechanism and the joint energy-reserve market, to verify the validity of the identified market mechanism. The conclusions provide a reference for the construction of a reserve market mechanism that supports the development of flexible regulation resources under the novel power system.