Coordinated Dispatch for Power Grid and Pumped Storage Hydropower Plants with Embedded Market Game Model

In some countries or regions, large-scale energy storage power stations such as pumped storage hydropower (PSH) plants can participate in both spot market trading and grid dispatch at the same time. In this case, the grid's dispatch of PSH plants cannot directly touch the consumption of renewable electricity in the spot market. In order to increase the total amount of renewable energy consumption in the two trading modes on the premise of each mode pursuing its maximum interests, a grid-PSH plants dispatching strategy optimization model and problem solving method with embedded market game model are proposed. The inner problem is the decision-making problem of pumped storage power stations participating in electricity spot market transactions. With the goal of maximizing the economic benefits of PSH plants participating in the spot market, a strategy for PSH plants to participate in electricity spot market is formulated. The outer problem is the capacity allocation and power dispatching strategy optimization problem of the PSH plants by the grid operator. The inner-layer game problem is embedded in the outer-layer problem to pursue minimizing the power grid operating cost while minimizing the amount of new energy discarded in the grid. The double-layer problem will eventually formulate capacity allocation and power dispatch strategies for PSH plants. The problem is simplified using strong duality theory and KKT conditions, and solved by using the non-dominated genetic algorithm II (NSGA-II). The results demonstrate that the total amount of renewable energy consumption is increased, proving the feasibility of the proposed model and method.