Optimal bidding strategy for energy storage systems in energy and flexible ramping products markets

Abstract

With the increasing penetration of renewable energy in the power system, the operation problems caused by the variabilities and uncertainties of renewable generations have become more severe, which can be alleviated by the use of flexible services. To economically inventive investors to provide flexible services, a flexible ramping products market is proposed in the CAISO and MISO markets. With the flexible power output, energy storage systems have great potentials to provide flexible services. To maximize the profits energy storage systems can earn from the co-optimized energy and flexible ramping products markets, an optimal bidding strategy for energy storage systems is given in this paper. The efficiency and adaptability are tested in three numerical examples, which are only energy markets, co-optimized energy and relatively high FRPs prices markets, and co-optimized energy and relatively low FRPs prices markets. Comparisons towards the ESS's performances are made between different examples.