The characteristics of the pumped-storage plant which strongly affect the strategy that can be used for bidding in the pool based day-ahead electricity market are the technical operating constraints like discrete pumping loads, generating schedules and power generating limit of the plant that are a strong function of head.
Optimal bidding strategies for pumped-storage power plant in a pool based competitive electricity market, in which the market clearing price is insensitive to the bid price of a single generator is investigated.
Based on forecasted hourly market clearing price, a multistage looping algorithm to maximize the profit of a pumped-storage plant is developed, considering both the spinning and non-spinning reserve bids and meeting the technical operating constraints of the plant.
On the other hand, in addition to the fact that the hydropower plant is a clean and sustainable energy resource, the pumped hydro storages (PHSs) as sustainable and flexible energy storage can be used in the power system to store the generated energy by renewable energy resources to improve the stability of power system ( Javed et al., 2020 ).
Case study As an illustration, consider Lewiston–Niagara pumped-storage power plant, operated by New York Power Authority and connected with New York’s electricity transmission grid, with E min = 100 MW h, E max = 1500 MW h, E 0 = 100 MW h, P p = 250 MW and η p = 0.6667 .
In order to purchase the power to the power market, the PHS operator should be submitted hourly bidding curves to the DSO, which this curve has a price for the selling power. Also, in order to sell the power to the power market, the PHS operator submits its hourly selling price per kWh to DSO, which this offers is called offering strategy.